In the early months of the pandemic, the Infectious Disease Research Institute faced financial difficulties, leading to court-administered receivership in January 2020. Billionaire Patrick Soon-Shiong came to the rescue, providing $26 million over three years and joining the board as chair. ImmunityBio, Soon-Shiong’s company, also pledged financial support and licensing agreement for the nonprofit’s vaccine technology. However, the relationship has soured as Soon-Shiong has withheld payment, allegedly due to disagreements over funding priorities.
AAHI’s leaders, including CEO Corey Casper, have accused Soon-Shiong of withholding funds to redirect them to a separate philanthropic initiative in South Africa instead of supporting biotech research as agreed. A lawsuit filed in the U.S. District Court alleges that Soon-Shiong violated fiduciary duties by withholding grant money, and seeks to force compliance with funding commitments and potentially remove Soon-Shiong from the board. Soon-Shiong, on the other hand, claims the funds were intended for Africa and accuses AAHI of misuse.
The conflict between Soon-Shiong and AAHI stems from differing views on funding priorities, particularly related to South African healthcare initiatives. Despite signing agreements to support African medical initiatives, Soon-Shiong claims that AAHI failed to direct funds towards this purpose. Tensions escalated during a board meeting where Soon-Shiong’s proposal to allocate funds to train cancer doctors in Africa was declined, leading to further discord.
The dispute between Soon-Shiong and AAHI escalated further with accusations of a power grab by AAHI’s leadership, leading to the initiation of a lawsuit. Soon-Shiong contested the legitimacy of new board members appointed by AAHI and convened his own board meeting to investigate management’s actions. The fate of AAHI now rests in the hands of the presiding judge, who has yet to issue a ruling on the case. Soon-Shiong’s actions, including terminating AAHI’s CEO and general counsel, reflect ongoing efforts to assert control over the situation and ensure compliance with funding priorities.
As the legal battle between Soon-Shiong and AAHI unfolds, the future of the organization, its funding, and leadership remain uncertain. The outcomes of the court case, ongoing investigations, and board decisions will determine the direction of AAHI and its continued mission to support biotech research and underserved populations. The conflict highlights the challenges that can arise in philanthropic partnerships and the complexities of managing funding agreements between donors and nonprofits.
