Precision Biologics has filed a lawsuit against biotech mogul Patrick Soon-Shiong, accusing him and the company’s controlling board members of wrongfully diverting capital.
Company stockholder James A. Feldman filed a custodian request with a US court last week accusing Soon-Shiong, his company NantCell and two other directors of breaching contract and fiduciary duty.
Precision Biologics — which develops therapeutic and diagnostic products for the early detection and treatment of cancer — was founded in 2012. NantCell purchased a US$50 million controlling stake in the company in 2015.
Feldman alleges that soon after the buy-in, NantCell immediately took $47 million of the initial investment from a company-controlled account.
The lawsuit also accuses controlling stockholders of “wrongfully taking the vast majority of the company's capital for their own use.”
Feldman is seeking the “immediate return of funds removed from company and to enjoin defendants from interfering with company's ability to utilise such funds or to take any acts out of ordinary course of company's business”.
This is the latest lawsuit against Soon-Shiong, said to be ‘America’s richest doctor’, and his companies. In June, the biotech billionaire was accused of seeking to acquire Altor Bioscience through a sweetheart deal.
Other lawsuits were filed this year after three reports — two from Stat and one from Politico — questioned Soon-Shiong’s potential conflicts of interest, expenditures at his non-profit business dealings and questionable donations.
Soon-Shiong was recently appointed to the US Department of Health and Human Services Health IT Advisory Committee despite these controversies.
This week he opened The Chan Soon-Shiong Institute for Medicine in Los Angeles, which will use pioneering immuno-oncology treatments for all cancers.