ProPhase Labs (PRPH) announced that its three COVID-19 testing laboratory companies filed for reorganization under Chapter 11 in United States Bankruptcy Court for the District of New Jersey, advancing the Crown Medical Collections initiative to the key next step. This bankruptcy action is strictly limited to the Company’s COVID-19 lab testing units, which are collectively owed tens of millions of dollars by insurance companies. Successful collections have the potential to be multiples of the Company’s current market capitalization. As a reorganization, the Company is taking the necessary steps to restore financial stability and position the laboratories for long-term viability and growth. The Company is confident in the merits of these claims and intends to pursue all available avenues in bankruptcy court to collect these funds efficiently.
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