(888) 637-5510

Written by 2:55 pm Blog, Current Investigations

Sorrento Therapeutics Inc. Files Chapter 11 Bankruptcy 

Sorrento Therapeutics Inc. Files Chapter 11 Bankruptcy featured by top securities fraud attorneys, the White Law Group

Securities Investigation: Sorrento Therapeutics Inc. 

The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended Sorrento Therapeutics Inc to investors. 

Sorrento Therapeutics Inc., a clinical stage and commercial biopharmaceutical company, filed for bankruptcy on February 13, weeks after reportedly being hit with judgments totaling more than $173 million in a licensing dispute, according to the Wall Street Journal. 

According to reports this week, Sorrento Therapeutics Inc (NASDAQ: SRNE) announced that the U.S. Bankruptcy Court for the Southern District of Texas granted interim approval of Sorrento’s $75 million debtor-in-possession financing from JMB Capital Partners. 

The company filed for chapter 11 in the U.S. Bankruptcy Court in Houston, an action that halted an attempt to collect the judgments awarded over alleged breaches by Sorrento of an exclusive licensing agreement between the companies. 

As of its chapter 11 filing, Sorrento had over approximately $1 billion in assets. The approved financing will reportedly allow the compnay to continue its operations as it restructures. 

As of market close yesterday, SRNE stock is down – -69.98% YTD

Recovery of Investment Losses in SRNE 

The problem with pharmaceutical and biotech investments is that they typically involve a high degree of risk. The research and development process for pharma companies often involves costly and lengthy testing trials that yield specific data. If the expected data or end points are not met, that could be bad news for investors.    

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so may be held responsible for any losses in a FINRA arbitration claim.    

If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment, they may be found liable for investment losses in a FINRA arbitration claim. Fortunately, FINRA provides an arbitration forum for investors to resolve such disputes.    

Recovery of Investment Losses    

If you are concerned about your investment in Sorrento Therapeutics Inc., you may be able to file a complaint against your brokerage firm. Please contact the securities attorneys at The White Law Group at 1-888-637-5510 for a free consultation.     

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. The firm represents investors throughout the country in claims against their brokerage firm.    

For more information on the firm and its representation of investors, visit WhiteSecuritiesLaw.com.    



Tags: , , , , , Last modified: February 24, 2023