National investment loss attorneys KlaymanToskes continues its investigation of brokerage firms and brokers/investment advisors who recommended unsecured notes in Clovis Oncology, Inc. (OTCMKTS: CLVSQ) following reports that Clovis has sold the majority of its remaining assets, including its cancer drug Rubraca, amid its bankruptcy proceedings.
Clovis Oncology’s unsecured noteholders are owed more than $400 million. After filing for Chapter 11 bankruptcy in December 2022 and having its common stock delisted from the NASDAQ, the company cited its failure to efficiently market its anti-cancer medication, Rubraca, as a contributing factor to its bankruptcy filing.
Investors that suffered losses in Clovis Oncology due to unsuitable investment recommendations by their broker/advisor are encouraged to contact KlaymanToskes immediately to discuss recovery options at 888-997-9956 or lklayman@klaymantoskes.com. All consultations are free and we do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
On March 30, 2023, Clovis conducted an auction to sell certain of its assets and rights associated with Rubraca, according to its April 5 2023 Form 8-K SEC filing. Pharma& Schweiz GmbH submitted the highest and bid at the auction and entered into an asset purchase agreement to purchase Clovis’ Product Business for an upfront payment of $70 million and up to an additional $50 million upon the successful achievement of specified regulatory milestones, and $15,000,000 in sales-related milestones.
The company’s most recent monthly operating report, dated April 30, 2023, reported Clovis Oncology’s total assets of $229,526,555 and total liabilities of $920,691,037, leaving Clovis with a negative ending equity/net worth of -$564,021,041.
In Clovis’ Form 8-K filing from April 14th, 2023, the company consummated its FAP Sale Transaction with Novartis Innovative Therapies AG. This allowed Clovis to sell “substantially all of the rights of the Company to its pipeline targeted radionuclide therapy clinical development program, FAP-2286,” including the company’s in-licensing agreement with 3B Pharmaceuticals GmbH.
According to public records, JP Morgan Securities, Credit Suisse Securities, BofA Securities and Leerink Swann acted as investment bankers for Clovis Oncology. JP Morgan Securities and Credit Suisse acted as the lead managers for the offering.
As noted by securities attorney Lawrence L. Klayman, Esq. “Prior to offering an investment to clients, brokerage firms and their advisors are obligated to conduct thorough research or ‘due diligence’. Brokers and financial advisors must make recommendations that align with the investor’s risk tolerance, age, net worth, liquidity requirements, and other critical considerations. A failure to fulfill these obligations serves as a basis for liability in a FINRA arbitration claim.”
Unsecured noteholders who purchased investments in Clovis Oncology Inc. through JP Morgan Securities, Credit Suisse, BofA Securities, Leerink Swann, or any other full-service brokerage firm, may hold their firm and broker/financial advisor liable for their losses in a FINRA arbitration claim.
Contact KlaymanToskes immediately to discuss recovery options for Clovis Oncology investments at 888-997-9956 or lklayman@klaymantoskes.com. All consultations are free and we do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com