Sorrento Therapeutics’ claims of finding a “cure” for COVID-19 — which led to a spike in stock prices — were neither materially false nor misleading, a federal appeals court ruled this week in upholding the dismissal of a securities fraud suit against the biopharmaceutical company.

The U.S. Court of Appeals for the Ninth Circuit also agreed with federal District Judge Anthony J. Battaglia of Southern California that the allegations in Andrew R. Zenoff’s class action complaint did not support the necessary strong inference of scienter in Sorrento’s “intent to improperly manipulate the price of Sorrento’s shares,” according to the appellate opinion.