A biotech firm formerly run by Martin Shkreli has entered Chapter 11 protection in the wake of the infamous entrepreneur’s Dec. 17 arrest on criminal securities fraud charges. The company, KaloBios Pharmaceuticals Inc., has hired Hogan Lovells as its outside bankruptcy counsel.
KaloBios’ bankruptcy petition, filed late Tuesday, comes less than two weeks after Shkreli was indicted for allegedly defrauding another pharmaceutical company he ran, and for deceiving investors in two hedge funds he managed. His lawyer, Kaye Scholer partner Evan Greebel, was also arrested and accused of conspiring with Shkreli to commit wire fraud. Both have pleaded not guilty. The U.S. Securities and Exchange Commission is also pursuing related civil charges against both men.
