Sorrento Therapeutics Inc. is attempting to prevent shareholders from accessing details about its awareness of an alleged romantic connection between a Texas judge, and an attorney who played a role in their bankruptcy. The shareholders, who according to a report may lose their investments through the bankruptcy, have contested the firm’s proposed Chapter 11 plan.
The shareholders’ attorney has requested information from Sorrento’s principal legal representative at Latham & Watkins. The inquiry centers on whether Latham or Sorrento had any knowledge of a relationship between attorney Elizabeth Freeman and the presiding bankruptcy Judge David R. Jones in Sorrento’s Chapter 11 case. This query presents the unique ethical considerations within the field of bankruptcy law. More on this issue can be found in this article.
It’s important to note that Sorrento argues that the request for this relationship information is irrelevant to the bankruptcy plan. As such, this case continues to unfold with the potential for lasting implications both for the company and the broader legal community.
For more detailed information on this continuing story, visit Bloomberg Law.