Sorrento says court orders shareholders to provide information on Scilex stock

Sorrento Therapeutics (SRNEQ) announced that the U.S. Bankruptcy Court for the Southern District of Texas entered an order requiring the top 25 brokers, dealers, banks, and other nominees that act as agents for Sorrento shareholders to provide Sorrento with information related to the common stock of Scilex (SCLX), in connection with Sorrento’s chapter 11 case that was filed on February 13. "As previously disclosed, on December 30, 2022, Sorrento announced a dividend to its shareholders of 76 million shares of common stock of Scilex, a substantial amount of which was distributed to the Brokerages, who hold the distributed shares in custody as agents for Sorrento shareholders. The Brokerages, however, have failed to report the ownership of such shares to Broadridge Financial Solutions, Inc., the entity designated to collect, verify, and tabulate shareholder votes for Scilex’s annual shareholder meeting on April 6, 2023. The Bankruptcy Court’s order requires the Brokerages to provide Sorrento certain information regarding the ownership and trading of Scilex common stock. As previously disclosed, due to the possibility of certain actions by a litigation creditor, Sorrento and its wholly-owned, non-operating subsidiary Scintilla Pharmaceuticals, Inc. sought chapter 11 relief to safeguard its business and ensure the continuation of business operations, while protecting and maximizing value for stakeholders. Scilex is not a debtor in the chapter 11 case," the company stated.