Global drug developer, Sorrento Therapeutics Inc. has recently won its case to maintain its bankruptcy proceedings in Houston, Texas. The ruling, delivered by Judge Christopher M. Lopez of the U.S. Bankruptcy Court for the Southern District of Texas, dismissed an attempt by the U.S. Trustee – the bankruptcy watchdog of the Justice Department – to either dismiss or transfer the case.
The attempt for dismissal or transfer came about as the U.S. Trustee accused Sorrento Therapeutics Inc. of purposely fabricating its connections to Texas. The intent, according to the U.S. Trustee, was to allow for the execution of its bankruptcy proceedings in the Southern District, a jurisdiction that has become a favorable destination for such matters.
However, Judge Lopez found the request from the U.S. Trustee to be untimely and, as such struck it down, allowing the case of Sorrento Therapeutics Inc. to remain in Houston. This draws attention to the increasing popularity of Texas as a destination for bankruptcy proceedings, with many corporations manufacturing links to the state to benefit from its bankruptcy regulation. An area that has seen several transformations in recent times.
You can read more about the intricacies of this case on Bloomberg law.