Retrotope Shareholders Ask Court to Toss ‘Bad Faith’ Bankruptcy

Three shareholders of Retrotope asked a Delaware bankruptcy court to dismiss the biopharmaceutical company’s Chapter 11, calling the filing an attempt by its largest shareholder to “steamroll” their rights.

The petitioning shareholders—Robert Molinari, Harry Saal, and Charles Cantor—argued in their Monday filing that Retrotope’s board didn’t properly authorize the bankruptcy filing under Delaware law. The filing requires the Los Altos, Calif.-based company to receive consent of at least two-thirds of its board members, they said.

The case should also be dismissed as being filed in bad faith, they said. The bankruptcy was brought to “circumvent” and “abrogate” shareholder rights and ...