Clawback Lawsuits Commence in Sienna Biopharmaceuticals, Inc.
September 15, 2021, District of Delaware – Plaintiff Jeoffrey L. Burtch, as a Chapter 7 Trustee for the bankruptcy estate of Debtor Sienna Biopharmaceuticals, Inc. initiates about twelve (12) clawback actions to avoid and recover approximately $1.5 million in alleged preferential transfers of property.
The Trustee asserts that the Debtor allegedly made the said transfers for, or on account of, an antecedent debt, and to or for the benefit of certain creditors during the ninety (90) day period before the filing of the Debtor’s bankruptcy petition under Sections 547 and 550 of the Bankruptcy Code. The Trustee also seeks to disallow all claims that the creditors filed or asserted against the estate so long as the creditors fail to pay or surrender to the Trustee the value of the avoidable transfers according to Sections 502(d) and (j) of the Bankruptcy Code.
Some of the creditors against whom the Trustee has initiated lawsuits include ; Innovaderm Research Inc. for return of $459,259.59, Knobbe, Martens, Olson & Bear, LLP for return of $250,589.03 and IQVIA Biotech LLC for $199,690.12.
By way of background, the Debtor commenced its bankruptcy case by filing a voluntary petition for relief under chapter 11 of the Bankruptcy Code on September 16, 2019. Honorable Mary F. Walrath is overseeing the Debtor’s cases. Cozen O’Connor P.C., a law firm based in Center City Philadelphia, Pennsylvania is representing the Trustee.