The liquidating trustee for Sorrento Therapeutics sued former directors and officers for breach of fiduciary duty, arguing their actions ignored the biopharmaceutical company’s financial state.
The complaint, filed Thursday in the US Bankruptcy Court for the Southern District of Texas, alleged that the executives approved a dividend of Scilex Holding Co. stock to Sorrento shareholders while the company was insolvent and facing a $173 million arbitration judgment.
The trustee, which is pursuing litigation for the benefit of creditors, seeks an award of damages in the amount of the dividend’s value, any losses incurred before and during bankruptcy, and attorneys’ ...
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