Nonprofit sues billionaire backer Patrick Soon-Shiong over leadership conflict

The Access for Advanced Health Institute (AAHI), based in Seattle, encountered severe financial issues, culminating in over $20 million in debt and a court-administered receivership in January 2020. In response to this crisis, billionaire Patrick Soon-Shiong stepped in to rescue the organization, committing to substantial annual funding to support its research efforts and licensing its vaccine technology. This partnership was initially celebrated, but the relationship soon deteriorated due to disagreements over fund usage. Tensions escalated when Soon-Shiong's foundation withheld an $8 million payment, and his biotech company, ImmunityBio, failed to meet its financial commitments. AAHI's leadership, including CEO Corey Casper, general counsel Candice Decaire, and board member Edward Mocarski, initiated a lawsuit against Soon-Shiong, alleging he violated his fiduciary duties by withholding funds. They argue that the funds were mismanaged and not directed towards the intended African medical initiatives. Soon-Shiong, however, has characterized the lawsuit as a corporate coup, asserting that the leadership's actions were an attempt to obstruct an investigation into the alleged misuse of funds. He claims that despite his financial support, AAHI has not fulfilled its commitments to fund programs in Africa. In a bid to regain control, Soon-Shiong convened a board meeting to terminate Casper and Decaire, while promising to release the withheld funds contingent on proper allocation. The conflict highlights the complexities of nonprofit governance and the challenges of aligning philanthropic intentions with organizational management.