WASHINGTON, D.C. (Michigan News Source) – The federal government shutdown didn’t just close museums, delay SNAP benefits and freeze routine operations. It also brought the Reven Holdings takings case to a standstill. Justice Department attorneys were barred from working once federal funding lapsed on October 1, halting their required response to Reven’s latest court filing. Under federal law, government lawyers cannot work during a shutdown, meaning the case sat in limbo as the appropriations gap stretched on.
RJX’s rise – and the freeze that stopped it cold.
Reven Holdings, Inc. developed Rejuveinix (RJX), a multi-nutrient anti-inflammatory injectable, pitched as a gentler, more balanced alternative to traditional immunosuppressive drugs, with possible uses in sepsis, COVID-19 complications, and other inflammatory illnesses. After years of preclinical work, early clinical safety data, and a portfolio of now-mostly-expired patents, the company was preparing to advance RJX toward commercialization – and even explore going public – when the SEC intervened, freezing assets and effectively shutting down operations over allegations that Reven’s leadership misused investor money and misrepresented executive compensation and audit practices.
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Reven denied any wrongdoing but the freeze derailed both the company and patient access: several shareholders who had been receiving RJX through early “proof-of-concept” and compassionate-use pathways say they were cut off, and company sources report at least 19 recipients died after access ended. The dispute has since widened into a high-stakes legal fight, with the SEC case continuing in federal court in Colorado and Reven simultaneously suing the federal government in the Court of Federal Claims, arguing that the asset freeze destroyed the value of its drug program, data, and intellectual property in an unconstitutional Fifth Amendment taking – a claim the court has allowed to move forward as it weighs whether the SEC’s actions were lawful regulation or something far more intrusive.
Judge has questions.
In an order filed on September 27, 2025, Judge Marian Blank Horn directed both sides to submit supplemental briefing on several unresolved questions, including how the ongoing Tenth Circuit appeal of the district court’s asset-freeze injunction affects the current case, whether the plaintiffs have adequately conceded the validity of the government’s actions for purposes of a takings claim, and whether the claim should be analyzed as a permanent or temporary taking.
The court ordered plaintiffs to file their supplemental brief by October 21, 2025, with the government’s response due by November 11, 2025.
Reven told the court in a filing on October 21, 2025, that the SEC’s ongoing appeal of the District Court injunction before the Tenth Circuit won’t change the takings issues because “The SEC’s enforcement action brought against Reven in the U.S. District Court of Colorado, and now on appeal in the Tenth Circuit, will not directly affect the SEC’s liability for a taking in this Court. That case involves an enforcement action brought by the SEC for Reven’s alleged violations of the Securities
Act, which Reven vigorously opposes. If the Tenth Circuit reverses the district court’s decision, then Reven’s assets would be unfrozen; but Reven’s patents have now expired, making that claim a permanent taking. There are no assets remaining to be taken.” They also argued that the takings claim before this Court does not constitute a judicial taking and maintained that its allegations met the standards for a permanent taking.
In their filing, Reven answered all of the questions asked by the judge – and on time. The government, however, did not meet their mandated deadline of November 11 because of the government shutdown.
Government shutdown finally ends – attorneys go back to work.
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Congress finally approved temporary funding of the federal government on November 12, 2025, restoring the Department of Justice’s ability to work on civil cases the next day. The government notified the court on November 14 that its attorneys were officially back on the job.
Judge: “I need more information” before moving forward.
Even with funding restored, the case did not immediately pick up speed. On November 21, Judge Blank Horn issued an order saying she cannot rule on the government’s earlier motion to dismiss until Reven provides a full accounting of the patents and property interests it claims the government destroyed.
The judge gave Reven until December 19 to supply a comprehensive list of all patents – active, expired, lapsed, and pending – along with key dates and subject matter. She also wants Reven to identify which patents were allegedly lost due to the SEC’s asset freeze and to spell out all types of property the company says were taken, from bank accounts to clinical data.
Shutdown delayed government’s required response.
Because of the shutdown, the government now has until January 20, 2026 to file a response to plaintiffs’ October filing and the newly established, projected December 19, 2025 submission by plaintiffs regarding the status of plaintiffs’ patents.
What comes next.
Michigan News Source reached out to the Reven team about the recent developments. Reven CEO Peter B. Lange said, “We appreciate the Court’s continued engagement and careful consideration of the complex issues at stake. We remain confident in the strength of our position and are committed to seeing this process through with respect for the legal system and all parties involved.”
The shutdown may have ended, but its ripple effects are far from over. With deadlines pushed back, filings reshuffled, and new information requested, both sides are now playing catch-up and the Reven takings case is drifting deeper into delay. What should have been a straightforward next phase is now behind schedule, postponing yet again a trial the Reven team has been eager to see move forward.
