NEW YORK, March 11, 2016 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of NantKwest, Inc. ("NantKwest" or the "Company") (NASDAQ: NK). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 9980.
The investigation concerns whether NantKwest and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On March 11, 2016, NantKwest announced that the Company's interim financial statements for the quarters ended June 30, 2015 and September 30, 2015 should no longer be relied upon due to the combined effect of financial statement errors primarily attributable to certain stock-based awards to the Company's Chief Executive Officer and Executive Chairman and build-to-suit lease accounting related to one of its research and development and Good Manufacturing Practices facilities. Management has determined that these errors were the result of a material weakness in the Company's internal control over financial reporting. The Company further stated that "the material weakness, as disclosed in previous filings, is a result of inadequate staffing levels, resulting in insufficient time spent on review and approval of certain information used to prepare our financial statements and the maintenance of effective controls to adequately monitor and review significant transactions for financial statement completeness and accuracy. Management is continuing to assess the effect of the restatement on the Company's internal control over financial reporting and disclosure controls and procedures and expects to report its conclusions regarding these matters in the Company's Annual Report on Form 10-K for the year ended December 31, 2015".
On this news, NantKwest stock has fallen as much as $0.86, or 10.18%, to $7.59 during intraday trading on March 11, 2016.
The Pomerantz Firm, with offices in New York, Chicago, Beverly Hills, and Florida, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
SOURCE Pomerantz LLP