Wade Benton v. CiVi Biopharma Holdings, Inc., et al.

District Court, N.D. California·Decided August 10, 2026·No. 4:25-cv-01000·Unknown

Opinion

WADE BENTON, Case No. 25-cv-01000-JST

Plaintiff, ORDER ON DEFENDANTS' MOTIONS v. TO DISMISS THE SECOND AMENDED COMPLAINT CIVI BIOPHARMA HOLDINGS, INC., et al., Re: ECF Nos. 76, 77 Defendants.

Before the Court are motions to dismiss filed by Defendants CiVi Biopharma Holdings, Inc. and BTG International, Inc. ECF Nos. 76, 77. The Court will grant BTG’s motion and deny CiVi’s motion. The following facts are taken from the second amended complaint (“SAC”). Plaintiff Wade Benton founded Eicos Sciences, Inc. with Kevin Christal in 2016. ECF No. 73 ¶ 21. Eicos was founded to develop new uses for an orphan drug known as iloprost. Id. Because iloprost is a vasodilator, a drug that opens blood vessels and increases bloodflow, Eicos intended to use it to treat diseases and injuries characterized by restricted circulation and fibrosis. Id. ¶¶ 23, 28. In 2018, Benton, along with Christal and the other Eicos stockholders (“the Eicos Sellers”), entered into a Stock Purchase Agreement (“SPA”) with CiVi. Id. ¶ 29. Under the SPA, CiVi purchased all shares of Eicos. Id. Concomitantly, Benton and the Eicos stockholders entered into the Sellers’ Representative Agreement (“SRA”), making Benton the Sellers’ Representative and vesting Benton with certain rights and responsibilities pertaining to the sale of Eicos and the development and marketing of iloprost. Id. ¶ 30. Representative: (1) a $2,000,000.00 “Base Purchase Price” within 60 days of the FDA’s approval of a New Drug Application (“NDA”) of an Eicos-developed drug containing or derived from iloprost for use in the United States to treat systemic sclerosis, Raynaud’s phenomenon, or idiopathic pulmonary fibrosis; and (2) “Milestone Payments” that would become due as Eicos- developed drugs met certain sales targets. Id. ¶ 31. Benton and Christal also agreed to become “Key Employees” of Eicos and/or CiVi after the purchase and at least until the FDA approved an Eicos-developed drug containing or derived from iloprost. Id. ¶ 35. If either left Eicos or CiVi prematurely, they would forfeit 50% of any Milestone Payments. Id. Experiencing difficulties securing FDA approval for an iloprost-derived drug to treat systemic sclerosis, Benton and Christal decided to target frostbite. Id. ¶ 37. After receiving positive initial feedback from the FDA about the use of iloprost to treat frostbite, Benton, as the Sellers’ Representative, and CiVi executed an Amendment Agreement (“the Amendment”) adding frostbite to the list of treated conditions that would trigger CiVi’s obligation to pay the Base Purchase Price and Milestone Payments. Id. ¶¶ 40–41. While negotiating the Agreement, Benton and Christal informed CiVi that they would not continue working to develop iloprost unless CiVi made the commitments in the Amendment. Id. ¶ 42. Upon signing the Amendment, Benton and Christal continued to work on iloprost for Eicos/CiVi, securing FDA priority review for an iloprost-derived frostbite treatment in early 2023. Id. ¶ 43. The FDA approved Eicos’s NDA for an iloprost-derived frostbite treatment on February 13, 2024, under the brand name Aurlumyn. Id. ¶ 45. As a result of the FDA’s approval of Aurlumyn, the Base Purchase Price became due on April 13, 2024 under the SPA and the Amendment. Id. ¶¶ 50–52. Benton has since repeatedly demanded that CiVi pay the Base Purchase Price, including in writing. Id. ¶ 53. Despite Benton’s repeated demands, CiVi has refused to pay the Base Purchase Price or provide assurances that it will pay any Milestone Payments. Id. ¶¶ 54–55. On October 21, 2024, BTG’s parent corporation, SERB SAS, announced that it had acquired the rights to Aurlumyn from CiVi (“the Assignment”). Id. ¶ 60. In the Asset Purchase liabilities” which CiVi will retain and remain responsible for. Id.¶ 62. The Assignment also required CiVi to indemnify BTG against claims arising out of the SPA or any other excluded liabilities. Id. ¶ 66. The APA, “in the form available to Benton, does not describe payments sufficient for CiVi to perform its obligations under the SPA.” Id. ¶ 64. The complaint was filed on January 1, 2025, and an amended complaint was filed on April 8, 2025. ECF Nos. 1, 13. The court dismissed Plaintiff’s amended complaint without prejudice on December 15, 2025. ECF No. 60. Plaintiff filed the SAC on January 27, 2026. ECF No. 73. It asserts breach of contract, promissory estoppel, and declaratory judgment claims against CiVi, and an intentional interference with contractual relations claim against BTG. Id. CiVi and BTG moved to dismiss on February 2, 2026. ECF Nos. 76, 77. Benton opposed both motions. ECF Nos. 78, 79. CiVi and BTG both filed replies on February 24, 2026. The Court took the motions to dismiss under submission without a hearing per Civil Local Rule 7-1(b). ECF No. 97. The Court has subject matter jurisdiction under 28 U.S.C. § 1332(a). A. Rule 12(b)(2) Under Federal Rule of Civil Procedure 12(b)(2), the court must dismiss an action if it does not have personal jurisdiction over the defendant. Fed. R. Civ. P. 12(b)(2). “In opposition to a defendant’s motion to dismiss for lack of personal jurisdiction, the plaintiff bears the burden of establishing that jurisdiction is proper.” Boschetto v. Hansing, 539 F.3d 1011, 1015 (9th Cir. 2008). Where “the motion is based on written materials rather than an evidentiary hearing, ‘the plaintiff need only make a prima facie showing of jurisdictional facts.’” Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 797, 800 (9th Cir. 2004) (quoting Sher v. Johnson, 911 F.2d 1357, 1361 (9th Cir. 1990)). “Although the plaintiff cannot simply rest on the bare allegations of its complaint, uncontroverted allegations in the complaint must be taken as true. Conflicts between parties over statements contained in affidavits must be resolved in the plaintiff’s favor.” Id. (internal quotation marks and citations omitted). “Federal courts ordinarily follow state law in determining the bounds of their jurisdiction over persons.” Daimler AG v. Bauman, 571 U.S. 117, 125 (2014). “California’s long-arm statute allows the exercise of personal jurisdiction to the full extent permissible under the U.S. Constitution.” Id. Because the applicable state “statute is coextensive with federal due process requirements, the jurisdictional analyses under state law and federal due process are the same.” Schwarzenegger, 374 F.3d at 800–01. Due process permits a court to exercise personal jurisdiction over a defendant only when “the defendant has sufficient minimum contacts with the forum state such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice.” Impossible Foods Inc. v. Impossible X LLC, 80 F.4th 1079, 1086 (9th Cir. 2023) (internal quotation marks and citation omitted). “The strength of contacts required depends on which of the two categories of personal jurisdiction a litigant invokes: specific jurisdiction or general jurisdiction.” Ranza v. Nike, Inc., 793 F.3d 1059, 1068 (9th Cir. 2015). For the court to exercise specific jurisdiction, the lawsuit must arise out of or relate to the defendant’s contacts with the forum. Id. In other words, there must be “an affiliation between the forum and the underlying controversy, principally, [an] activity or an occurrence that takes place in the forum state and is therefore subject to the state’s r

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Wade Benton v. CiVi Biopharma Holdings, Inc., et al., (N.D. Cal. 2026).

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