Bankrupt Smartphone Startup Holes Wants Internal Investigation

Hoyos Integrity Corp., a security-focused smartphone startup that is trying to reorganize in chapter 11 bankruptcy, wants to bring in an outside party to investigate “allegations of malfeasance,” a lawyer for the Florida-based company says.

During a hearing Tuesday at the US Bankruptcy Court in Wilmington, Del., Hoyos lawyer Raymond Lemisch said there had been “discord” among management and the board of directors.

A third party could help determine whether the allegations had merit, he said, without elaborating.

Hoyos directors when it filed for bankruptcy in April included Gary Cohn, a former top economic adviser to President Donald Trump.

Write to Becky Yerak at becky.yerak@wsj.com

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