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Notice to Clovis Oncology Shareholders: Clovis Reports Net Worth of -$579 Million

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Updated on: March 15, 2023

Clovis Oncology, Inc. Investors May Seek Recovery Through Arbitration: Contact KlaymanToskes

National investment loss attorneys KlaymanToskes is currently investigating brokerage firms and financial advisors that recommended investors purchase shares in Clovis Oncology, Inc. (OTCMKTS: CLVSQ). Clovis Oncology recently reported a net worth of -$579,126,142 at the end of January 2023. Shareholders, including employees of Clovis, who held large, concentrated and/or margined positions at a full-service brokerage firm may recover their losses through FINRA arbitration.

Clovis Oncology shareholders should immediately contact attorney Lawrence L. Klayman, Esq. at 888-997-9956 or by email at lklayman@klaymantoskes.com to discuss recovery options. All consultations are free and confidential. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you. 

Clovis Reports Net Worth of -$579 Million

KlaymanToskes previously reported that Clovis Oncology Inc. filed for chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware on December 11th, 2022. The company’s reasoning included its inability to sell its only approved anti-cancer drug, Rubraca. According to the filing, “unsecured noteholders” are owed more than $400 million.

On December 29, 2022, NASDAQ filed a Form 25 and delisted Clovis Oncology’s common stock from trading on NASDAQ, which became effective at the opening of the trading session on January 9, 2023.  

According to Clovis’ most recent Form 8-K filing, dated March 1st, 2023, the company and its other entities (Clovis UK and Clovis Ireland) each filed their monthly operating reports with the Bankruptcy Court for the reporting month ended January 31, 2023. 

The company’s monthly operating report, attached to its Form 8-K, reports Clovis Oncology’s total assets of $331,757,988 and total liabilities of $910,884,130, leaving the company with a negative ending equity/net worth of -$579,126,142. 

The Risks of Securities Concentration

Whether your advisor recommended a portfolio concentrated in one security or sector, or managed an existing concentrated position, the risks are imminent over time. The longer an investor holds a concentrated position, the greater the risk exposure.

Securities concentration in stocks such as Clovis Oncology may be caused by any of the following:

  • Inherited Legacy Stock;
  • Employee Stock Option Plan (ESOP) Participant;
  • Financial Advisor Recommendation;
  • Founding Member of Publicly Traded Company;
  • Restricted Stock Rule 144 Stock;
  • Corporate Lock-Up Agreement;
  • Closely-held Stock Acquired through Merger or Acquisition; and
  • Low Cost Basis with Substantial Capital Gains.

No matter what the reason for maintaining a concentrated stock position, a brokerage firm and its financial advisors must recommend suitable risk management strategies to protect the value of any concentrated stock position held in a brokerage account.

Widely known and effective risk management strategies including diversification, hedging, stop loss limit orders, short sales, equity swaps, and many others. Visit our Risk Management Strategies page to learn more about how your advisor should be protecting you from the risk of a concentrated position.

Shareholder Recovery Options

KlaymanToskes is investigating brokerage firms and financial professionals that failed to recommend risk management strategies to their clients for large, concentrated or margined positions in Clovis Oncology, Inc. According to public record, JP Morgan Securities and Credit Suisse Securities acted as joint book-running managers for the offering, with Leerink Swann acting as co-manager.

If you are an investor or employee of Clovis Oncology, Inc. (OTCMKTS: CLVSQ) who held large, concentrated and/or margined positions at a full-service brokerage firm, you may be entitled to a financial recovery.

If you suffered significant losses at a full-service brokerage firm, contact attorney Lawrence L. Klayman, Esq. immediately at 888-997-9956 or by email at lklayman@klaymantoskes.com to discuss recovery options. All consultations are free and confidential. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you. 

Disclosure: Investors that had self-directed accounts who did not rely on the advice of a financial advisor are not eligible for our services.

About KlaymanToskes

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.

Contact

KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com