DOJ Bankruptcy Unit Opposes Invitae’s Bid to Hire Kirkland

Kirkland & Ellis LLP can’t represent genetic testing company Invitae Corp. in its Chapter 11 case because the law firm has a significant conflict of interest, the Justice Department’s bankruptcy watchdog said.

Kirkland represents Invitae’s largest secured creditor, Deerfield Management Company, which holds nearly 80% of Invitae’s 2028 senior secured notes, outside of Invitae’s bankruptcy. Even though Kirkland represents Deerfield in matters unrelated to Invitae’s case, it’s still a conflict of interest, the US Trustee said in a Monday filing in the US Bankruptcy Court for the District of New Jersey.

“It appears that K&E is not disinterested and holds ...