Liminatus Pharma Settles Lawsuit Over Blocked Warrant Transaction

Biotech company reaches agreement with broker-dealer over default judgment

Published on Feb. 13, 2026

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Liminatus Pharma Inc. has settled claims that it blocked a brokerage's exercise of warrants after going public, satisfying a default judgment against the biotech company, according to a court filing on Friday. Broker-dealer Clear Street LLC told the US District Court for the Southern District of New York that it entered into a settlement with Liminatus 'on mutually agreed terms' and acknowledged 'full and complete satisfaction' of the September 2025 default judgment, which was for around $7.6 million plus interest.

Why it matters

This settlement resolves a legal dispute between Liminatus Pharma and Clear Street LLC over the biotech company allegedly blocking the brokerage from exercising warrants after Liminatus went public. The case highlights the complexities that can arise between companies and their investors, especially around the exercise of financial instruments like warrants.

The details

According to the court filing, Clear Street LLC had obtained a default judgment against Liminatus Pharma in September 2025 for around $7.6 million plus interest after the biotech company allegedly blocked the brokerage from exercising warrants. The two parties have now reached a settlement on 'mutually agreed terms', with Clear Street acknowledging 'full and complete satisfaction' of the previous judgment.

  • The default judgment against Liminatus Pharma was issued in September 2025.
  • The settlement between Liminatus and Clear Street was reached and filed with the court on February 13, 2026.

The players

Liminatus Pharma Inc.

A biotech company that allegedly blocked a brokerage from exercising warrants after going public.

Clear Street LLC

A broker-dealer that obtained a default judgment against Liminatus Pharma in September 2025 for around $7.6 million plus interest, and has now reached a settlement with the biotech company.

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What they’re saying

“We entered into a settlement with Liminatus on mutually agreed terms and acknowledge full and complete satisfaction of the judgment.”

— Clear Street LLC (Court filing)

The takeaway

This settlement demonstrates the importance of companies and investors resolving disputes over financial instruments like warrants through the legal system, rather than allowing conflicts to escalate. The ability to reach a mutually agreeable outcome suggests both parties likely saw value in avoiding further litigation.