Home / Business and Economy / California Eye Color Startup Declares Bankruptcy
California Eye Color Startup Declares Bankruptcy
14 Dec
Summary
- Stroma Medical filed for Chapter 11 bankruptcy due to a payment dispute.
- The company owes over $1.46 million to a former employee.
- Despite raising $70 million, debts exceed $2 million, impacting operations.
Stroma Medical Corporation, a California company aiming to permanently change eye color to blue via a laser procedure, has filed for Chapter 11 bankruptcy. The company's financial difficulties stem from a significant payment dispute with a former employee, Samuel Blumberg, who is owed $1.46 million. This legal battle has led to substantial punitive damages against Stroma.
The bankruptcy filing, on Monday, will allow Stroma to reorganize its debts while attempting to continue operations. The company has raised $70 million since 2009, but now faces debts topping $2 million. Chairman Gregg Homer stated the filing is strategic, potentially offering a path to challenge punitive damages and secure new funding.
Stroma's controversial laser technology, which aimed to remove pigment from the iris, has been in development for over a decade, with initial projections for US availability long missed. The company still intends to pursue clinical studies in Germany next year, hoping to overcome its financial and legal hurdles.
