ProPhase Labs Inc. has provided an update on its Crown Medical Collections initiative, which is focused on recovering legacy COVID-19 testing receivables through its laboratory subsidiaries currently in Chapter 11 proceedings. Crown Medical, acting as special counsel, is in settlement negotiations with over 250 insurance payors, with approximately 50 cases in advanced settlement stages and expected to close within the next 30 to 90 days. The anticipated recoveries are projected to significantly improve near-term liquidity, supporting ongoing operations and a court-supervised restructuring process. Net cash recoveries after fees and costs could exceed $50 million, though the final amount remains subject to negotiations and court processes. Remaining proceeds, after satisfying subsidiary creditor obligations, are expected to benefit ProPhase Labs, Inc.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. ProPhase Labs Inc. published the original content used to generate this news brief via GlobeNewswire (Ref. ID: GNW9642105-en) on January 26, 2026, and is solely responsible for the information contained therein.