Cher sues Dr. Patrick Soon-Shiong over healthcare stock fraud

Cher is suing billionaire physician and entrepreneur Patrick Soon-Shiong, MD, over fraud related to investments in a Miramar, Fla.-based biopharmaceutical company Altor BioScience, reports the Los Angeles Times.

The entertainer purchased her stake in the company in 2013 for an undisclosed price. In January 2016, she sold her shares back to the company for $1.50 each. Now, she contends the sale to have occurred at "an unreasonably below-market price," according to the lawsuit filed Friday.

The lawsuit alleges fraudulent concealment and breach of fiduciary duty since the company never alerted Cher that some compounds of an Altor drug were advancing in clinical trials for cancer and HIV/AIDS.

In early 2016, Dr. Soon-Shiong acquired the outstanding shares of Altor for about $15 million, but the lawsuit claims the company is now worth "over $1 billion."

A spokesman for Dr. Soon-Shiong said the lawsuit has no merit and they plan to fight it vigorously, according to the LA Times.

Other stakeholders have filed similar, separate lawsuits.

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