Tag Archives: ROKA

Did I get screwed in the Sorrento Tech liquidation?

Last year I bought some shares of Sorrento Tech, formerly known as Roka Bioscience (NASDAQ:ROKA), on its last trading day, December 28, 2017. Today the first liquidation distribution finally showed up on my brokerage statement, but to my unpleasant surprise only shares that I bought earlier got the distribution. After checking with my broker they told me, and I will quote their response below, this was as it should be because the company set an ex-dividend date of December 28, 2017.

Per DTC comments:
The First Interim Liquidating Distribution in the aggregate amount of $3,199,137.92, payable to the holders of the Record Date being December 28, 2017 on November 9, 2018 (the “Payable Date “) be,and hereby is, declared payable on November 9, 2018; and it is further.

Given that I bought the shares on December 28, 2017 and it takes two days to settle trades I didn’t get anything. So the question? Is this possible? Did someone screw-up? The company had not set any ex-dividend date in the proxy statement related to the liquidation, although it did state that it would close its stock transfer books at the close of business on such date.

To me it seems that someone made a mistake, and I don’t think it’s me. If the stock isn’t trading ex-dividend when I’m buying it, I should in theory get the rights to any potential future payment. But the question is, who screwed up? The liquidating company? DTCC? My broker? And what can I do about it? Any readers with a good idea?

Disclosure

Author seems to be long a bunch of ROKA shares that might be worthless.