Aug. 19 at 7:44 PM
$BIOR here is what they said:
Unfortunately, because Biora Therapeutics filed for bankruptcy, it makes a securities class action arising out of misdeeds from before the filing very difficult and not worth pursuing for a few reasons:
First, after the filing, something called an automatic stay prevents any lawsuits against the company without approval from the bankruptcy court. This is rarely granted.
Second, although potential litigants can file bankruptcy claims against the company’s estate, even if successful you would only collect pennies on the dollar of what you were owed. But, for Biora I see the claims deadline has passed (deadline was 8/5/2025) and this is no longer possible.
Third, coming out of bankruptcy, claims against Biora will be discharged, meaning there is no way to go back and get relief for any wrongdoing before December 2024.
Fourth, bankrupt companies are generally unable to pay damages even if we brought a case. The recovery could be negligible.