Sorrento’s Abusive Bankruptcy Must Be Moved or Tossed, DOJ Says

Drug developer Sorrento Therapeutics Inc.'s bankruptcy should be transferred or dismissed because its attorneys participated in an “abusive venue-manufacturing scheme” to have it heard in the Southern District of Texas, the Justice Department’s bankruptcy monitor said.

Sorrento’s attorneys at Jackson Walker LLP improperly used a UPS mailbox address outside of Houston to generate venue in the Southern District of Texas bankruptcy court, the US Trustee said in a motion filed Friday.

“Under the most charitable view, the only business conducted there was Jackson Walker’s effort to manufacture venue and create the illusion of Scintilla having a Texas connection,” the US ...