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StocksMediumUpdated•Originally published 7 May 2026•Updated 8 May 2026•
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ImmunityBio Shares Plunge 21% Amid Class Action Lawsuit and FDA Warning

Key Facts

1ImmunityBio faces a securities class action lawsuit following an FDA warning letter regarding misleading efficacy claims for its product Anktiva.
2The news caused IBRX shares to plunge 21%, resulting in a loss of approximately $2 billion in market capitalization.

ImmunityBio (IBRX) is facing intensified pressure following an FDA warning letter and a class action lawsuit alleging misleading claims about its cancer treatment, Anktiva. The company recently reported mixed Q1 financial results, posting an EPS loss of -$0.62, significantly wider than the anticipated -$0.07 loss. Despite the bottom-line miss, quarterly sales reached $44.21 million, surpassing estimates and marking a 168% increase compared to the previous year. Investors reacted poorly to the earnings report, sending the stock down an additional 11.46% in recent trading. The lawsuit, filed by Hagens Berman, accuses the firm of securities fraud, a development that had already contributed to a $2 billion wipeout in market capitalization. Market participants are now weighing the company's robust revenue growth against the severe legal and regulatory hurdles facing its primary biologic pipeline.