Relmada Therapeutics filed a motion to amend the previous complaint that was part of the lawsuit against Laidlaw & Company a few months ago. Relmada develops treatments for chronic pain and Laidlaw was once their investment banker. The therapeutics company had sued the investment bank for releasing false information against the enterprise. They said the information was acquired when Laidlaw was the company’s investment banker and was disseminated by Laidlaw’s executives known as James Ahern and Matthew Eitner.
The updated complaint highlights how Laidlaw broke fiduciary duty when they released this information and stated that Relmada is seeking compensation for costs accrued because of the said offense. Ahern, Eitner, and Laidlaw had been issued with tentative restraining orders by the Nevada court in which the case was heard.
Laidlaw’s actions have adversely affected the business as it can be seen from the stock price which was trading at $4.03 per share on the date that Laidlaw issued the press release. The stock price was at $1.65 per share at the time Relmada filed the complaint. The actions of Laidlaw were seen as retaliation for the comments that Relmada had made about their quality of service. Relmada was not impressed with how Laidlaw had conducted a road show to secure new investors for the company.
Laidlaw was previously known as Sands Brothers International Ltd. It is an investment bank and brokerage firm that is incorporated in England. They offer pooled investment strategy in some sectors including insurance, technology, and retail. They offer capital raising, acquisition financing, and placement of debt. They have offices in England, New York, Florida, and Texas.
FINRA has blacklisted some of the employees at the firm for offenses that they have committed in the past. Most of the former employees of the company have described it as a dangerous place to work. I support that because of the many negative reviews that people have written about the company online.