DENVER, Colo. (Michigan News Source) – Pharmaceutical company Reven Holdings has suffered another legal setback after a federal appeals court upheld restrictions that have largely shut down its operations. However, the judges emphasized that their decision does not mean the company or its executives committed fraud.
On October 14, the U.S. Court of Appeals for the Tenth Circuit upheld a preliminary injunction and asset freeze imposed by the Securities and Exchange Commission (SEC).
The Fight Over an Experimental Drug
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Reven was developing Rejuveinix (RJX), an experimental drug being studied for its potential to treat inflammation, immune system problems and cardiovascular conditions. The drug had completed Phase 1 clinical trials and entered Phase 2 research before the freeze interrupted development. RJX has not received FDA approval.
In December 2022, the SEC accused Reven and executives Brian Denomme, Peter Lange and Michael Volk of misleading investors about executive compensation, plans to take the company public, previous litigation and the use of investor funds. The defendants deny the allegations and have submitted financial evidence, including a forensic accounting analysis, challenging the SEC’s claims. A federal judge froze company assets in January 2023, followed by a preliminary injunction in March 2024.
Michigan News Source has been following Reven’s legal battle since September 2025.
Reven Claims Asset Freeze Destroyed What It Was Meant to Protect
Reven argued that the freeze was destroying the very assets it was supposed to protect, preventing the company from continuing drug trials, obtaining financing and maintaining valuable patents.
The district court modified the restrictions several times to allow certain payments, financing arrangements and patent-related activities. However, Reven maintains those changes came too late. In July 2024, the lower court acknowledged that the freeze was contributing to declining asset values and authorized additional modifications.
In a separate lawsuit, Reven submitted a December 2025 patent inventory documenting numerous international patents and applications that had lapsed, been abandoned or withdrawn. Reven argues that these losses significantly damaged the company’s future business opportunities.
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The appeals court acknowledged Reven’s unusual argument that the freeze was actually reducing the value of its assets. Nevertheless, judges concluded that the lower court had acted within its legal authority in maintaining the restrictions.
Why Reven Didn’t Get an Evidentiary Hearing
Reven also argued that it should have received an evidentiary hearing before the preliminary injunction was entered, allowing witnesses to testify and attorneys to challenge disputed evidence.
However, the appeals court noted that Reven and the SEC had jointly requested cancellation of the original January 2023 hearing. Although Reven later submitted an email asking whether the judge needed additional information, the appeals court determined that it didn’t qualify as a formal request for another hearing. The judges therefore concluded that the lower court was permitted to decide the matter using written evidence.
Important Footnote: The SEC Hasn’t Proven Fraud
Perhaps one of the most important parts of the ruling appears in footnote 8 on pages 45–46. The judges stressed that they were not deciding whether Reven or its executives actually violated securities laws. Instead, they were determining whether the SEC had presented enough preliminary evidence to support the restrictions while the case continues.
The judges specifically warned that their discussion should not be treated as a final determination of anyone’s liability. In other words, the SEC won this round, but it has not won its fraud case. Whether the allegations are true remains for the lower court to determine.
A Separate Constitutional Battle
Reven is also pursuing a Fifth Amendment lawsuit against the federal government in the U.S. Court of Federal Claims, arguing that the freeze amounted to an unconstitutional taking of its property.
Reven claims the government was repeatedly warned that restrictions could cause valuable patents to expire. The government disputes that the alleged losses qualify as an unconstitutional taking.
An August 11, 2026, valuation report prepared by Eton Venture Services estimated Reven’s value before the freeze at approximately $15.1 billion, although no court has established that figure as damages.
What’s Next?
U.S. Court of Federal Claims Judge Marian Blank Horn has ordered both sides to explain how the Tenth Circuit’s recent ruling affects Reven’s takings case. The judge wants a closer examination of the appeals court’s legal conclusions and findings, with both parties required to submit their arguments by November 6, 2026. The case remains pending, with the court yet to determine what impact the ruling will have on Reven’s claims against the government.
Both proceedings continue to raise significant questions about investor protection, corporate property rights, and the consequences of prolonged asset restrictions. For now, the freeze remains in place, the SEC’s fraud allegations remain unresolved, the Fifth Amendment lawsuit is in limbo, and Reven’s experimental drug remains caught in a legal battle.
