Lipella Pharmaceuticals Inc. has filed for voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Western District of Pennsylvania. The filing, dated March 30, 2026, indicates that the company and certain of its subsidiaries, collectively referred to as the 'Debtors', are seeking to undergo a 363 sale process to maximize value for creditors. The company cautions that trading in its common stock during the Chapter 11 case is highly speculative and poses substantial risks, as trading prices may not reflect the actual recovery for stockholders. The company plans to seek customary 'first-day' relief to continue day-to-day operations, including maintaining cash management systems and paying employee wages and benefits. Updates will be provided throughout the restructuring process.

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