Sorrento Therapeutics Inc. v. NantPharma Inc

DOLLAR AMOUNT: $125 million

CASE NAME: Sorrento Therapeutics Inc. v. NantPharma Inc.

TYPE OF CASE: Breach of contractual obligations

COURT: Los Angeles County Superior Court

JUDGE(S): Judge Terry A. Green

PLAINTIFF LAWYERS: Latham & Watkins LLP, Daniel S. Schecter, Chandler S. Howell, Max A. Shapiro, Jamie L. Wine, Steven N. Feldman, Adam Perlman

DEFENSE LAWYERS: Saunders & Associates APC, Gary S. Saunders; Trépanier Tajima LLP, Lisa D. Trepanier; Larson LLP, Rick L. Richmond; Foley & Lardner LLP, Troy S. Tessem; Bohm Wildish & Matsen, LLP, James G. Bohm

The complex legal battle between San Diego biopharmaceutical company Sorrento Therapeutics and Dr. Patrick Soon-Shiong began in April 2019 when Sorrento filed a high-profile arbitration demand essentially accusing the Los Angeles-based entrepreneur and inventor of carrying out a "catch-and-kill" scheme to keep Sorrento's generic anti-cancer drug off the market.

SEAN BERKOWITZ

The Sorrento drug, Cynviloq, was a modified, generic version of Abraxane, a pricey and successful anti-cancer drug that Soon-Shiong had developed and then sold for $2.9 billion to another company in 2010, according to press accounts.

In 2015, Sorrento sold its Cynviloq, still under development, to Soon-Shiong's NantPharma Inc. for $90.5 million. It retained the right to receive potential milestone payments in the future based on further development and approval of the drug.

Sorrento's arbitration action four years later alleged that NantPharma had failed to fulfill its contractual obligations to develop Cynviloq and bring it to market or to make milestone payments.

A team of Latham & Watkins attorneys from several offices represented Sorrento in the arbitration, the firm said in a written summary of the litigation. Discovery in the complex case took more than two years.

Next came an 18-day arbitration hearing before Faith Hochberg, a retired U.S. District Court judge and the former U.S. attorney in the District of New Jersey. On Dec. 19, 2022, Hochberg awarded Sorrento $125 million in damages.

STEVEN N. FELDMAN

"We are pleased that the Court has affirmed the result of the arbitration against NantPharma and has awarded $125 million in damages to Sorrento," company CEO Henry Ji said in a written statement soon after the award. "From here, we remain focused on our important work of developing new and innovative therapies for patients struggling with cancer, intractable pain, infectious disease and more."

L.A. Superior Court Judge Terry A. Green confirmed the award on March 16 last year. Sorrento Therapeutics Inc. v. NantPharma Inc., 23STCP00295 (L.A. Super. Ct., filed Feb. 2, 2023).

However, by that time, a loss in separate litigation and other issues had forced Sorrento to file for Chapter 11 bankruptcy. In re: Sorrento Therapeutics Inc., 4:23-bk-90085 (Bankr. S.D. Tex., filed Feb. 13, 2023).

Asked about Sorrento's $125 million arbitration victory, NantPharma attorney Henry Olivar of Quinn Emanuel noted that the company has since been liquidated.

-- Don DeBenedictis

ADAM PERLMAN