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Report: Cher sues an LA billionaire and Florida health care company for stock fraud

Key Points
  • Cher is suing billionaire surgeon and entrepreneur Patrick Soon-Shiong over health care stock fraud, the Los Angeles Times reported.
  • Cher bought a stake in Altor, a Florida-based biopharmaceutical company, and sold them off at "an unreasonably below-market price," the suit says.
  • Altor's share price has skyrocketed because it's developing a promising drug to treat HIV/AIDs and cancer.
Katie Kramer | CNBC

Cher is suing a prominent billionaire and a health care company because she allegedly felt "duped" about the value of drug stocks in which she invested, the Los Angeles Times reported.

In a lawsuit filed Friday, the entertainer accuses surgeon and entrepreneur Patrick Soon-Shiong of fraud related to investments in a Florida-based biopharmaceutical company Altor, the Times reported.

Soon-Shiong's spokesperson told the Times that the suit had "no merit." Soon-Shiong is also known for investing in Tronc Inc., which owns the Los Angeles Times, Chicago Tribune and other American news outlets.

In 2013, Cher bought her stake in Altor, then sold it back to the company early last year at $1.50 per share — "an unreasonably below-market price," the Times reported the suit says.

Yet when the singer and actress was asked to sell back her stock, she claims she wasn't informed that Altor was developing a promising drug to treat HIV/AIDS and cancer, according to the Times.

Soon-Shiong then acquired the outstanding shares of Altor, which have since skyrocketed in value. According to Cher's suit, the company is now valued at more than $1 billion.

Other defendents include Altor Acquisition LLC, Altor cofounder Hing C. Wong and Fred Middleton, a vice chairman of Altor's board.

Read the full story at the Los Angeles Times.