Monthly Archives: May 2023

Crypto brokerage Voyagers bankruptcy plan was approved by the United States Bankruptcy Court for the Southern District of New York on May 17, according to a Reuters report. Judge Michael Wiles order approving the procedure was published by the court a day earlier.

The so-called third bankruptcy plan was proposed on May 5 after Binance.US backed out of plans to buy $1 billion worth of Voyager assets on April 25. That deal had overcome resistance from the U.S. government before Binance.US last-minute reversal. Voyager will now liquidate that is, distribute its assets to its creditors.

In September, before the Binance.US deal, FTX US had won an auction for Voyagers assets, bidding $1.4 billion, but that sale fell through when FTX collapsed. The FTX sale would reportedly have allowed creditors to receive 72% of the value of their accounts. FTX sued Voyager for $445.8 million in January, claiming loan repayments it made in 2022 are liable to clawback because they occurred immediately prior to FTXs bankruptcy.

Related: US officials appeal protections for Voyager execs in Binance.US sale

Voyager said on its website that customers could now expect to receive 35.72% of their claims initially, either in crypto through the Voyager app or in cash after 30 days. According to Voyager, it had $1.33 billion of assets for recovery as of May 8, of which $629.8 million was available for initial recovery, on claims of $1.8 billion.

The size of the creditors initial recovery could increase if FTX/Alameda Researchs claim for preferential recovery is unsuccessful. Voyager is holding back $445 million to cover that claim. In addition, Voyager may still recover funds from bankrupt Three Arrows Capital. Voyagerissued a notice of default to Three Arrows on a loan of 15,250 Bitcoin (BTC) and 350 million USD Coin (USDC) in late June. Those assets were worth $655 million then and approximately $768 million at the time of writing.

Voyager filed for bankruptcy on July 5.

Magazine: Can you trust crypto exchanges after the collapse of FTX?

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Voyager bankruptcy plan approved, customers may recover 35.7% of claims initially - Cointelegraph

Bed Bath & Beyonds bankruptcy might be a tailwind for TJXs (TJX) HomeGoods brand, according to company executives.

We never like to name the other retailers where it's happening, but we do strongly believe that creates market share opportunities and market grab for us, TJX CEO Ernie Herman said on the companys earnings call when asked about Bed Bath & Beyond.

HomeGoods, the second largest division of TJX, saw sales decline 7% in the first quarter as the segment continues to battle tough comparisons from what management has described as outsized sales during the pandemic.

For the quarter HomeGoods produced $1.97 billion in net sales, accounting for roughly 16% of TJXs overall net sales. With Bed Bath and Beyond winding down its 360 stores over the next few months, TJX, and HomeGoods specifically, will benefit, according to Bernstein retail analyst Aneesha Sherman.

In an April note titled, Why TJX and TGT (TGT) stand to gain most from BBBYs demise, Sherman wrote that more than 80% of Bed Bath and Beyond locations have a HomeGoods or TJ Maxx within five miles.

On Wednesday, TJX management revealed those locations are a key part of the companys strategy to gain market share with Bed Bath and Beyond out of the picture. For stores near where a Bed Bath & Beyond once stood, HomeGoods can re-rank inventory to match products that mightve been popular at the local Bed Bath & Beyond store.

We don't just go in and say, Oh, we should do more of this category of business because that's what Bed Bath & Beyond did, Herman said. "We do it by location and by the category of businessesas we think they stood for. And we say, yeah, there's more market share opportunity for us in those categories.

Shoppers leave a Bed Bath & Beyond store, after the company declared bankruptcy, in Danvers, Massachusetts, U.S., April 24, 2023. REUTERS/Brian Snyder

In the near-term, Bed Bath & Beyond's winddown will likely be a headwind, Sherman said, as the company heavily discounts its remaining inventory. But when those sales end sometime this year, TJX will stand to benefit in the second half of the year.

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"People who would have shopped at BBBY over holidays will now have to shop somewhere else, and given the overlap and similarity in store base, customer base, locations and assortment, HG should be a big winner," Sherman told Yahoo Finance via email on Wednesday.

Josh is a reporter for Yahoo Finance.

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Bed Bath and Beyond's bankruptcy could help TJ Maxx owner TJX - Yahoo Finance

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Note:

I have covered IronNet (NYSE:IRNT) previously, so investors should view this as an update to my earlier articles on the company.

For a couple of quarters now, I have advised investors to consider selling existing positions in ailing cybersecurity start-up IronNet based on the company's severe execution issues and elevated liquidity needs.

IronNet has been on life support by long-term shareholder C5 Capital Ltd. ("C5 Capital") and a number of insiders and associated funds for some time now as C5 Capital and the company remain in negotiations regarding a proposed going-private transaction "at a price equal to $0.30 per share".

After several extensions, the exclusivity period for negotiating a definitive transaction expired on March 14.

Please note that among other things, consummation of the transaction would be subject to C5 Capital obtaining sufficient financing.

On Tuesday, IronNet filed its annual report on form 10-K for the fiscal year ending January 21 with the SEC and warned on a potential near-term bankruptcy filing (emphasis added by author):

Management expects that operating losses and negative cash flows from operating activities will continue in the foreseeable future as we continue to work to fund our operations. As of January 31, 2023, there is substantial doubt about our ability to continue as a going concern within one year from the issuance of our consolidated financial statements.

Based on our current planned operations, in the absence of additional sources of liquidity, management anticipates that our existing cash and cash equivalents and anticipated cash flows from operations will not be sufficient to meet our operating and liquidity needs for any meaningful period of time following the filing of this report.

There is no assurance that management will be able to obtain additional liquidity or be successful in raising additional funds or that such required funds, if available, will be available on attractive terms or that they will not have a significant dilutive effect on our existing stockholders. In the event we determine that additional sources of liquidity will not be available to us or will not allow us to meet our obligations as they become due, we may need to file a voluntary petition for relief under the United States Bankruptcy Code in order to implement a plan of reorganization, court-supervised sale, and/or liquidation.

Following negative free cash flow of $67.9 million in fiscal year 2023, cash and cash equivalents were down to a paltry $7.6 million at the end of January.

Company SEC-Filings

The company's financial struggles have also started to impact operations with annual recurring revenue of $26.2 million ("ARR") down 18% on a year-over-year basis amid a 25% reduction in recurring software customers. In addition, calculated billings decreased by 23% to $20.8 million.

Adding insult to injury, IronNet has received written notice from the New York Stock Exchange ("NYSE") that the company is no longer in compliance with a number of continued listing standards. With the cure period for regaining compliance with the $1 minimum bid price requirement having already expired, the company's common shares might be delisted at any time now.

In recent months, IronNet has amassed $20.3 million in short-term debt obligations solely to keep the lights on for a little bit longer with the convertible notes issued to insiders and C5 Capital scheduled to mature at the end of next month.

Quite frankly, with C5 Capital and insiders having accumulated more than $20 million in senior secured debt obligations in recent months, I just don't see the need for C5 Capital to shell out more than $30 million in cash to acquire the company's remaining outstanding shares.

I would rather expect C5 Capital, insiders and the company to agree on a restructuring support agreement to be implemented under chapter 11 of the U.S. Bankruptcy Code with senior secured lenders becoming the company's new owners in exchange for equitizing their claims and providing a sufficient amount of debtor-in-possession ("DIP") financing.

With only a limited number of creditors being involved, implementation should go smoothly and IronNet would likely be able to emerge as a private entity within weeks after the filing.

As the potential upside for equity holders seems limited to the originally proposed acquisition price "equal to $0.30" per share, risk/reward appears highly unfavorable.

IronNet remains on life support by C5 Capital and a number of insiders which have provided over $20 million in senior secured short-term debt in recent months which is scheduled to mature on June 30.

Given the dismal state of the company's business and ongoing, substantial liquidity needs, I would expect IronNet to restructure under chapter 11 of the U.S. Bankruptcy Code with senior secured creditors C5 Capital and a number of insiders becoming the restructured company's new owners following its emergence from bankruptcy protection.

Even if C5 Capital will indeed agree on a bail-out deal "at a price equal to $0.30 per share", upside for common shareholders would be very limited.

Given the highly unfavorable risk/reward, I would urge investors to consider selling existing positions and moving on.

Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.

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IronNet: Near-Term Bankruptcy Filing Might Be In The Cards - Sell ... - Seeking Alpha

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Filing For Bankruptcy Protection Due To PFAS Litigation Costs - The National Law Review

FOUR stores have filed for bankruptcy amid a nationwide retail apocalypse, as shoppers have been shifting their buying habits.

With consumer spending being cramped by high inflation, many brick-and-mortar shops are feeling the pressure.

Even once high performing top brands like Bed Bath & Beyond and Tuesday Morning have struggled to stay afloat during the current economic conditions.

One expert said, despite inflation, consumer spending has not deflated entirely, but the trends behind it are changing.

Consumers continue to spend, but how and where they spend is evolving, Bankrates chief financial analyst Greg McBride told The U.S. Sun.

More retail spending occurs digitally and less in a physical store location, he added.

Foot traffic has dramatically declined with the rise of work-from-home situations.

This shift, alongside the increase of consumer spending toward services and away from goods, has seen brick and mortars suffer, according to McBride.

The rise in credit card balances and the number of cardholders carrying balances is a byproduct of inflation that has stretched many household budgets beyond the breaking point, the expert said.

How much consumers are spending needs to be viewed through the lens of inflation - consumers are spending more but not getting more. Millions are using credit cards just to get by.

As shoppers look for any way to make their dollar count, the once-thriving brick-and-mortar stores just cant keep up.

The U.S. Sun compiled a full list of companies that declared bankruptcy in the past few years.

Home goods store Tuesday Morning filed for bankruptcy in February and shortly after announced the closure of half of their retail locations.

At least 860 stores have reported their upcoming closures in 2023, but thats likely just the start of the burgeoning retail ice age.

Stores in states including but not limited to California, Florida, Georgia, Maryland, Nevada, and Nebraska will be shuttering this year.

The first hit of closures for the chain arrived in May 2020 after its initial bankruptcy protection filing. Back then, the retailer lost 230 locations.

While Tuesday Morning did eventually make its way out of bankruptcy in December of that year, it has still struggled since then.

In the fiscal year ending July 2, 2022, the furnishings store had lost $59million, followed by another $28.1million more in the first quarter of its current fiscal year.

The company said filing for bankruptcy will "enable the company to reduce its outstanding liabilities, obtain the significant and necessary capital, and ultimately transform into a nimbler retailer that serves heritage markets in a profitable manner."

Party supply store Party City may have flourished pre-pandemic, but the coronavirus outbreak put a hit on both in-person events and the stores financial performance.

Since filing for bankruptcy, the store has placed 12 locations up for auction so far.

Under a $150 bankruptcy loan, the chain said it will continue operating while restructuring its debt load.

In September 2022, Party City held $1.7billion in debt but was working to achieve a smaller and more successful fleet of stores.

The popular department store declared bankruptcy in May 2020 and announced it would close over 800 stores.

Unfortunately, the company had acquired $4.5billion in net losses since 2010.

Only 670 JCPenney locations exist today, and more stores are slated to close this spring, including those in Oswego, New York, and Elkhart, Indiana.

Simon Property Group and Brookfield Property Group have agreed to acquire the chain for $1.75billion.

Company leaders at Bed Bath & Beyond said the home goods giant is closing all 360 stores after filing for bankruptcy in April.

In addition, all the companys 120 buybuyBABY locations will be going under as well.

However, theres one silver lining for shoppers.

As Bed Bath & Beyond stores close, products will be marked down to reduced rates.

In Bradenton, Florida, a Bed Bath & Beyond storefront advertises 10 to 40 percent off on all merchandise.

This includes all home, baby, beauty, and wellness products, according to The Bradenton Herald.

Up to 30,000 jobs could be lost due to the store closures.

The company originally had hoped to avoid store closures, saying it would pivot away from any store closures if a buyer was found.

Bed Bath & Beyond had debts of around $5.2billion when it filed for bankruptcy.

As well-known national chains and mom and pops alike struggle in the current retail environment, another finance expert has predicted which stores are likely to be hit hardest next.

Andrew Lokenauth, a Tampa-based financial analyst who is now the founder of personal finance media platform Fluent in Finance, said there are several reasons driving the perfect storm of closures hitting retailers across the country.

It was amplified by the excess of money that we printed during the recession, Lokenauth told The U.S. Sun.

"When you're printing that much money, it has to be absorbed back into the economy.

The smaller businesses are not able to keep up with the price hikes, and its inevitable many are forced to close their doors, Lokenauth said.

However, some chains are likely to do better than others even amid the harsh environment in the months to come.

Some retailers could remain essentially unaffected by the closure trends, especially if they have created a market appeal based on their discounts.

Lokenauth said places like Dollar General and Five Below will continue to do well, as will stores selling high-luxury goods like Nordstrom.

This is because their customers will continue their spending habits no matter if theres a recession or not.

The ones most at risk are the stores that have built brands catering to the everyday middle-class American, the expert explained.

I think the stores that fall within the middle for the middle-class Americans, those might not tend to do well because people will try to cut back, Lokenauth said.

A huge chain with 1,200 locations and a major Hooters rival shut down a store after a streak of other closures.

Meanwhile, a beloved Italian restaurant and Olive Garden competitor is also closing its doors after 15 years.

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Full list of retailers that have filed for bankruptcy as shoppers go online to find deals... - The US Sun

Former users of the bankrupt Canadian crypto exchange Quadriga CX will soon get a check for 13% of their claim, according to a notice to creditors published late Friday by accounting giant EY.

Documents from EY shows Quadrigas estate owes CAD $303.1 million ($222.3 million) across 17,648 claims from creditors, including Canada Post and the countrys tax authority, Canada Revenue Agency (CRA).

Filings show that there are 15 claims with a value greater than CAD $1 million, and 28 claims with a value between CAD $500,000 and $999,999. There are also 15,236 claims valued under CAD $10,000.

According to EY, CRA determined that Quadriga had not reported income during its 2016 2018 fiscal periods and subsequently owes $11.7 million in back taxes.

The value of the crypto will be paid out, according to values pegged at April 15, 2019 market prices.

EY says that users with bitcoin claims will get CAD $6,739.08 ($7,122.9) per BTC. For Ethereum, users will get CAD $223.45 ($299.45) per ether.

Originally posted here:

Quadriga CX Bankruptcy Claimants to Get 13% on the Dollar - CoinDesk

Influencer, entrepreneur, and self-help guru Tai Lopez is having a very strange year. The usually loud and self-centered 46-year-old, well known for his videos showcasing his sports cars, mansions, and bookshelves, has gone uncharacteristically quiet on his social media save for YouTube and Instagram, where he continues to push self-help podcasts and book reviews. So, whats going on?

Lopezs last post on Twitter roughly two months ago announced the sad news of his best friends passing. While its undoubtedly tragic to lose a loved one and certainly a valid reason to take a social media hiatus the loss isnt the only explanation as to why Lopezs posting has diminished.

On March 2, the Wall Street Journal reported that Lopezs company, Retail Ecommerce Ventures, LLC, was struggling to stay afloat and seeking legal assistance from Kirkland and Ellis, the same law firm working with Celsius Network and Voyager Digital in their respective bankruptcy cases.

There has been no update since.

Lopez started Retail Ecommerce Ventures with fellow multimillionaire Alex Mehr. Throughout 2020 to 2022, Lopez boasted about his acquisitions, which included bankrupt companies like RadioShack, Pier1, Franklin Mint, and Modells. However, Lopez has refrained from discussing his business ventures in the past year and has shifted his focus to monetizing his audience through his 67 Step program and answering questions related to energy levels.

Meanwhile, his business partner Mehr has deleted his Instagram profile and hasnt posted on Facebook for nearly three years.

Many of the duos acquisitions, which are former retail brick-and-mortar stores transitioned into ecommerce companies, have once again fallen on hard times.

Pier1 Imports has gone from a home furniture and decoration chain to a seller of fragrances; The Franklin Mint has moved on from selling painted coins to hats, mugs, and sports memorabilia, and RadioShack once a major electronics retailer in the US, attempted and failed to rebrand as a web3 company.

Read more: How wire fraud, not securities violations, lands crypto criminals in prison

RadioShack may have been Lopezs most successful venture into failed-business acquisitions. Its Twitter account quickly gained a substantial following due to provocative posts and trolling of critics. Unfortunately, two weeks after FTXs collapse, the account fell silent and hasnt been active since.

The electronics chain, which pinned its hopes on becoming a decentralized exchange and even spun up a token on the Binance Smart Chain, has shuttered RadioShack.org. Its crypto token, RADIO, has plummeted from a high of $0.037 to $0.00065 a loss of 98%.

So while its impossible to say if Lopez or Retail Ecommerce Ventures will be bankrupt soon, its quite clear that all of his acquisitions are struggling. Not to mention, Lopezs pleas for people to contact him about selling their companies doesnt inspire confidence, as one online commentator noted.

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Failing ventures and Twitter hiatus spark Tai Lopez bankruptcy ... - Protos

SAN DIEGO, May 14, 2023 /PRNewswire/ -- Sorrento Therapeutics, Inc. (OTC: SRNEQ, "Sorrento"), a biopharmaceutical company dedicated to the development of life-saving therapeutics to treat cancer, intractable pain, and infectious disease, today announced that, in connection with its ongoing chapter 11 case, the U.S. Bankruptcy Court for the Southern District of Texas (the "Bankruptcy Court") has entered an order compelling certain brokerage firms to (on or before May 23, 2023) credit all shares of common stock of Scilex Holding Company (Nasdaq: SCLX) that Sorrento distributed to its stockholders on or around January 19, 2023 (the "Dividended Scilex Stock") to their customers' accounts.

In addition, the Bankruptcy Court ordered the brokerage firms to file a report with the Bankruptcy Court detailing as to each customer's account, on an anonymous basis, the number of shares of Dividended Scilex Stock credited and the quoted price of such stock on a marked-to-market basis. The brokerage firms must also complete and file a report with the Bankruptcy Court regarding their compliance with the court's order.

The Bankruptcy Court's order approves a motion filed by the Official Committee of Equity Security Holders in Sorrento's chapter 11 case, who had requested the relief. The committee of equity security holders was appointed in the case to act as a fiduciary for, and represent the interests of, all Sorrento stockholders. A copy of the order has been served on the brokerage firms via overnight mail and email.

WHAT SHOULD HOLDERS OF DIVIDENDED SCILEX STOCK DO NEXT?

Sorrento strongly urges all holders of Dividended Scilex Stock to contact their individual brokers to demand the following:

That your shares of Dividended Scilex Stock be distributed into your individual brokerage account.

That your broker provide real-time quotes on the Dividended Scilex Stock in your individual brokerage account.

That your broker certify to the Bankruptcy Court such broker's compliance with Regulation SHO and 17 C.F.R. 240.15c3-3.

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If holders of Dividended Scilex Stock are unable to reach their brokers and have their shares of Dividended Scilex Stock distributed to their individual accounts and/or real-time quotes provided on such stock in their individual accounts, Sorrento strongly urges such holders to notify Sorrento, and Sorrento will in turn notify the Bankruptcy Court of such situation. Such holders can submit a notification to Sorrento at sclxdividendshares@sorrentotherapeutics.com.

As previously announced, on April 25, 2023, the Bankruptcy Court entered an order extending the expiration of the restrictions on transfer of the Dividended Scilex Stock from May 11, 2023 to September 1, 2023 (or an otherwise earlier date to be determined, as set forth in the order).

About Sorrento Therapeutics, Inc.

Sorrento is a clinical and commercial stage biopharmaceutical company developing new therapies to treat cancer, pain (non-opioid treatments), autoimmune disease and COVID-19. Sorrento's multimodal, multipronged approach to fighting cancer is made possible by its extensive immuno-oncology platforms, including key assets such as next-generation tyrosine kinase inhibitors ("TKIs"), fully human antibodies ("G-MAB library"), immuno-cellular therapies ("DAR-T"), antibody-drug conjugates ("ADCs"), and oncolytic virus ("Seprehvec"). Sorrento is also developing potential antiviral therapies and vaccines against coronaviruses, including STI-1558 and COVI-MSC; and diagnostic test solutions, including COVIMARK.

Sorrento's commitment to life-enhancing therapies for patients is also demonstrated by our effort to advance a TRPV1 agonist, non-opioid pain management small molecule, resiniferatoxin ("RTX"), and SP-102 (10 mg, dexamethasone sodium phosphate viscous gel) (SEMDEXA), a novel, viscous gel formulation of a widely used corticosteroid for epidural injections to treat lumbosacral radicular pain, or sciatica, and to commercialize ZTlido (lidocaine topical system) 1.8% for the treatment of postherpetic neuralgia (PHN). RTX has been cleared for a Phase II trial for intractable pain associated with cancer and a Phase II trial in osteoarthritis patients. Positive final results from the Phase III Pivotal Trial C.L.E.A.R. Program for SEMDEXA, its novel, non-opioid product for the treatment of lumbosacral radicular pain (sciatica), were announced in March 2022. ZTlido was approved by the FDA on February 28, 2018.

For more information visit http://www.sorrentotherapeutics.com.

Forward-Looking Statements

This press release and any statements made for and during any presentation or meeting concerning the matters discussed in this press release contain forward-looking statements related to Sorrento and its subsidiaries under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Forward-looking statements include statements regarding the potential timing of crediting the Dividended Scilex Stock to customers' accounts by the brokerage firms, any early expiration of the restrictions on transfer on the Dividended Scilex Stock, Sorrento's ability to operate and grow its business, Sorrento's liquidity following its previously announced debtor-in-possession financing (the "DIP financing"), Sorrento's ability to safeguard its business operations and protect and maximize value for stakeholders, Sorrento's long-term objectives and commercialization plans, future opportunities for Sorrento, Sorrento's future business strategies, the expected cash resources of Sorrento and the expected uses thereof; Sorrento's current and prospective product candidates, planned clinical trials and preclinical activities and potential product approvals, as well as the potential for market acceptance of any approved products and the related market opportunity; statements regarding ELYXYB, SP-102 (SEMDEXA), SP-103, SP-104 or any of Sorrento's product candidates, if approved by the FDA; Sorrento's development and commercialization plans; and Sorrento's products, product candidates, technologies and prospects.

Risks and uncertainties that could cause Sorrento's actual results to differ materially and adversely from those expressed in our forward-looking statements, include, but are not limited to: Sorrento's ability to enforce on its arbitration award in the Cynviloq Arbitration, general economic, political and business conditions; risks related to the ongoing COVID-19 pandemic; the risk that the potential product candidates that Sorrento develops may not progress through clinical development or receive required regulatory approvals within expected timelines or at all; risks relating to uncertainty regarding the regulatory pathway for Sorrento's product candidates; the risk that Sorrento will be unable to successfully market or gain market acceptance of its product candidates; the risk that Sorrento's product candidates may not be beneficial to patients or successfully commercialized; the risk that Sorrento has overestimated the size of the target patient population, their willingness to try new therapies and the willingness of physicians to prescribe these therapies; risks that the results of the Phase 2 trial for SP-103 or Phase 1 trials for SP-104 may not be successful; risks that the prior results of the clinical trials of SP-102 (SEMDEXA), SP-103 or SP-104 may not be replicated; regulatory and intellectual property risks; and other risks and uncertainties indicated from time to time and other risks set forth in Sorrento's filings with the SEC, and relating to the voluntary proceedings under Chapter 11 in the Bankruptcy Court (the "Chapter 11 Cases"), Sorrento's ability to continue operating in the ordinary course while the Chapter 11 Cases are pending, the timing and outcome of the Chapter 11 Cases, Sorrento's ability to obtain timely approval by the Bankruptcy Court of the motions filed in the Chapter 11 Cases and any effects of the Chapter 11 Cases on the enforcement of the arbitration award in the Cynviloq Arbitration and Sorrento's ability to comply with the restrictions imposed by the terms and conditions of the DIP financing. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and we undertake no obligation to update any forward-looking statement in this press release except as may be required by law.

Contacts:

For Sorrento Therapeutics, Inc.

Media ContactThe Levinson Group212-202-2754Email: sorrento@tlgcommunications.comWebsite: http://www.sorrentotherapeutics.com

For the Official Committee of Equity Security Holders

CounselGlenn Agre Bergman & FuentesPhone: 212-970-1600Email: GABFsorrentoteam@glennagre.com

Sorrento and the Sorrento logo are registered trademarks of Sorrento Therapeutics, Inc.

G-MAB, DAR-T, Seprehvec, SOFUSA, COVI-MSC, COVIMARK, Fujovee and Ovydso are trademarks of Sorrento Therapeutics, Inc.

SEMDEXA (SP-102) is a trademark of Semnur Pharmaceuticals, Inc. A proprietary name review by the FDA is planned.

All other trademarks are the property of their respective owners.

Cision

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SOURCE Sorrento Therapeutics, Inc.

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Sorrento Therapeutics, Inc.'s Bankruptcy Court Orders Brokerage Firms to Credit Dividended Scilex Stock to Customers' Accounts and Sorrento Advises...

HIGHLAND PARK, Mich. (WXYZ) Highland Park city officials agreed to settle a lawsuit brought by a couple whose building the city seized in 2020, then offered to return in exchange for two new police cars.

The city agreed to pay $300,000 to settle the suit, admitting to no wrongdoing.

The settlement, recommended by Mayor Glenda McDonald and approved by the city council in March, comes as the city teeters on the edge of bankruptcy, struggling to provide basic city services.

RELATED: Highland Park seized their building; the price to get it back was 2 new police cars

This never should have happened, this does not happen in America, said attorney Marc Deldin, who represented the Bloomfield Hills couple whose building was seized. This doesnt happen anywhere else in Michigan, only in Highland Park.

As 7 Action News first revealed last year, Highland Parks then-Mayor Hubert Yopp and city attorney Terry Ford seized the 13,000 square former church in 2020. Its owners were using the building to grow medical marijuana.

The husband and wife had secured a license to grow it, but Yopp claimed it was an illegal drug operation. Criminal charges were never filed.

According to the buildings owners, the city offered to return the building in exchange for two new police cars.

RELATED: Highland Park to return seized building after asking for new police cars in exchange

The offer, spelled out in court records and e-mails, said the city would return the building after receiving two vehicles totaling nearly $70,000.

The buildings owners refused.

A day after 7 Action News reported on the seizure, the city returned the building to its owners.

In March, the city settled the lawsuit filed by the couple whose building was seized, admitting to no wrongdoing and agreeing to pay them $300,000.

In a city starved of resources, it could go a long way, said Ken Bates, a Highland Park resident and former city council member.

Today, the city is staring down bankruptcy and remains on the hook for a $24 millionwater bill it cant afford to pay.

We could use equipment from our fire department, equipment for our police department, road repair equipment, DPW equipment, programming for residents, children and seniors, Bates said. Every dollar counts.

City officials say their insurance carrier is picking up half the cost of the settlement, leaving the Highland Park on the hook for $150,000.

Attorney Marc Deldin says with a new mayor and interim police chief, hes hopeful this sorry and costly chapter in the citys history wont repeat itself.

I hope the people of Highland Park continue putting in quality officials, Deldin said. They keep the police chief and they dont go back to how things used to be.

Reached for comment, former Mayor Yopp said the city was still right to have seized the building.

Contact 7 Investigator Ross Jones at ross.jones@wxyz.com or at (248) 827-9466.

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Facing bankruptcy, Highland Park settles lawsuit over seized ... - WXYZ 7 Action News Detroit