Laidlaw and Company is an investment brokerage firm and a full-service banking which offers personalized investments skillful executions and advice to the public institutions and also private institutions. Recently the company and its executive have got a history of violating U.S financial regulations which result in a lot of customer’s complaints and also monetary penalties. The company issues false information to the public making them make uninformed decisions which have greater effects to their undertakings.
Relmada Therapeutics, Inc. which is a clinical developing novel therapy and treats chronic pain, filed a lawsuit against Laidlaw & Company and its two executives, Matthew Eitner and James Ahern in the U.S. District Court for the District of Nevada. Laidlaw & company previously acted as an investment banker to Relmada that is using shares and other confidential information regarding the company and which was gained from these banking services to Relmada. Laidlaw & company also launched a contest to take active control of the company.
In the lawsuit, Relmada therapeutics claims that Laidlaw and its executives, Matthew Eitner and James Ahern, violated the U.S. laws and regulations for disseminating false materials and also giving misleading information in an attempt to take effective management control of Relmada. Laidlaw failed to comply with the security and exchange commission rules and regulations, Relmada’s Articles of Incorporation and Nevada law and continues to give misleading information and also soliciting proxies from Relmada stockholders under the misleading and false pretenses. The lawsuit was to act as a warning to the Relmada stockholders that Laidlaw provides a lot of false and misleading information.
The chief executive officer of Relmada in his press release said that the business was to take infection point with a high-value creation opportunity which was to take effect within a short period. This was the reason why Laidlaw had opportunistically timed the launch of the contest so as to take effective control of the company. The Chief Executive Officer believed that it was a conflict of interest for Laidlaw to use the shares and confidential information it got from Relmada for its gain and interest.