Scilex announces court order to pause short selling of Sorrento-issued stock

• Scilex Holding Company (NASDAQ:SCLX) announced Thursday that a bankruptcy court in Texas issued an order suspending short sales of its common stock distributed by its parent Sorrento Therapeutics (OTCPK:SRNEQ).
• In February, COVID-19 drug and vaccine developer Sorrento (OTCPK:SRNEQ) and its subsidiary Scintilla Pharmaceuticals filed for Chapter 11 bankruptcy in the Bankruptcy Court for the Southern District of Texas.
• Granting a request made by equity holders of the ongoing Chapter 11 case, the court handed a temporary restraining order suspending short sales of SCLX common stock issued by Sorrento on or around Jan. 19, the company said.
• The court has also ordered certain brokerages to provide details on all profits generated from naked short-selling of the above shares and Scilex’s (SCLX) common stock.

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