April 14, 2022, 10:57 PM
Retrotope bankruptcy was within board’s business judgment Shareholders said bankruptcy would ‘steamroll’ their rights
Biopharmaceutical company Retrotope survived an effort by dissident shareholders to toss its Chapter 11 case after a judge said the bankruptcy wasn’t filed in bad faith after receiving proper consideration from the company’s board.
A motion by three Retrotope shareholders to dismiss the Chapter 11 filing was rejected at a Thursday hearing by Judge John T. Dorsey of the U.S. Bankruptcy Court for the District of Delaware.
The ruling represents a win for the Retrotope amid an ongoing disagreement between some shareholders and management over the company’s direction after failed trials for one of its drugs.
Retrotope, which develops drugs …
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