Here's Why NantKwest Inc. Tumbled 21.1% in July

Here's Why NantKwest Inc. Tumbled 21.1% in July

Shares of NantKwest (NASDAQ: NK), a clinical-stage biotech company primarily focused on immunotherapy compounds that treat cancer, fell by 21% in July, according to S&P Global Market Intelligence. The big decline looks to be partially due to the news that a law firm has initiated an investigation into the company's board of directors.  

A shareholder rights law firm called Haeggquist & Eck announced in the middle of July that it has launched an investigation to look for "possible breaches of fiduciary duty and other violations of state law by certain members of NantKwest board of directors."

This investigation was instigated by the restating of two NantKwest earnings reports from 2015. Specifically, the company underreported CEO Patrick Soon-Shiong's compensation by about $49 million. The law firm plans on looking into this matter further to see if NantKwest's board breached its fiduciary duties by failing to disclose the CEO's full compensation. 

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Source: Fool.com