In the early stages of the COVID-19 pandemic, the Infectious Disease Research Institute in Seattle faced financial difficulties and had to declare receivership due to mounting debts. However, billionaire Patrick Soon-Shiong stepped in to save the organization, pledging $26 million over three years and joining the board as chair. ImmunityBio, a biotech company controlled by Soon-Shiong, also committed to supporting the institute financially. The partnership was initially seen as a positive development for the institute.
However, the relationship between Soon-Shiong and the Infectious Disease Research Institute has soured, as Soon-Shiong’s foundation failed to make its final payment and ImmunityBio did not fulfill its financial commitments. The institute’s leaders, led by CEO Corey Casper, allege that Soon-Shiong is withholding the money because they refused to redirect it to a separate philanthropic initiative in South Africa, instead of using it for the institute’s research efforts. A lawsuit has been filed against Soon-Shiong and his foundation for allegedly violating their funding commitments.
Soon-Shiong has denied the accusations and claimed that the funds were always intended to support healthcare initiatives in Africa, which the institute allegedly failed to do under Casper’s leadership. He accused Casper and his allies of attempting a corporate coup and halting a board investigation into the institute’s use of grant funds. Soon-Shiong is seeking to dismiss the lawsuit, stating that the institute’s management has misused the funds he provided.
The conflict between Soon-Shiong and Casper dates back to the origins of their partnership when Soon-Shiong rescued the institute from receivership. Soon-Shiong claims that the funds he provided were meant to support medical initiatives in Africa, which the institute failed to fulfill. The tension escalated during a board meeting when Soon-Shiong’s proposal to redirect funds to train cancer doctors in South Africa was declined. Casper allegedly orchestrated a plan to thwart the approved grant, leading to further disputes between the parties.
The fate of the Infectious Disease Research Institute is now in the hands of the court, which has yet to issue a ruling on the ongoing legal battle. Soon-Shiong recently terminated Casper and another board member, signaling a change in leadership. The billionaire has agreed to provide the remaining funds, with the condition that they are used for the intended purpose of supporting African healthcare initiatives. The dispute highlights the complex nature of philanthropic partnerships and the challenges that can arise when conflicting interests come into play.
