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Diabetes research Restitution v. Wachtel CA4/1
After acquiring the litigation claims of a former biotech company called MicroIslet, Inc. (MicroIslet), Diabetes Research Restitution, LLC (DRR) sued several individuals who were formerly associated with MicroIslet. In its operative complaint, DRR alleged a claim for breach of fiduciary duty against a group of former MicroIslet directors and officers and a claim for aiding and abetting breach of fiduciary duty against several of the company's former creditors. Both claims were based on allegations that the officers and directors pursued a wrongful takeover scheme, eschewing available equity financing in favor of onerous debt financing that would result in a recapitalization plan giving the debt holders control of MicroIslet.

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