Oil and gas fracking services provider Nitro Fluids LLC has filed for Chapter 11 bankruptcy protection in a Texas court following a costly legal adjudication. The company is listed with more than $50 million in debt in the aftermath of a trial in which they were found guilty of infringing upon patents owned by another company.
The outcome of the patent infringement trial came as a significant blow to the fracking services company which subsequently led to its decision to seek bankruptcy protection. The trial took place some months before the Chapter 11 filing, allowing the company to temporarily buffet the effect of the jury verdict, before ultimately sending it into bankruptcy.
This legal setback for Nitro Fluids LLC demonstrates that intellectual property matters can have profound financial consequences for corporations, even those operating in industries such as oil and gas where high operational costs are commonplace.
To learn more about these legal proceedings and Nitro Fluids LLC, you can read Law360’s coverage here.