If you are still wondering/doubting why SCLX shares dropped from 16 to 5...... shorting and specifically naked shorting (which is illegal) enabled by the brokers.This motion was just submitted to the bankruptcy court who has already isssued a subpoena to brokers who ignored it. No reason to think that it won't be signed by Judge Jones. The wheels of justice may be slow, but can eventually grind to a resolution.
Since its appointment, the Equity Committee has taken on the critically important work of reviewing the Debtors’ assets and potential exit strategies involving the monetization of those assets. The Debtors’ equity interest in Scilex is one such asset. As this Court has observed, the Debtors have raised significant concerns about missing Scilex shares that have remained unresolved. Thus, the Debtors filed their Rule 2004 Motion to obtain information from various brokerage firms that hold the Scilex shares on behalf of their customers, but so far have failed to get satisfactory answers to reconcile conflicting reports of the amounts held by the brokerage firms that are the subject of this Motion. Presently, the Equity Committee understands that the Debtors do not have any beneficial ownership information for approximately 44 million Scilex shares.
