Relmada announced that it had decided to amend the complaint against Laidlaw & Company in the US District Court. The amended complaint contains an additional legal claim against Laidlaw & Company. The new complaint includes a new claim that the company breached its fiduciary duty when it disclosed confidential information about Relmada. Relmada also wants to get monetary compensation from the dissemination of false material in December 2015 by Laidlaw’s proxies.
Relmada noted in its amendment that Nevada had already issued an injunction against Laidlaw. Relmada believes that there was extensive financial damage that resulted from the actions of Laidlaw, for which they must be compensated. In a letter addressed to its stakeholders, Relmada informed them of the action it was taking to protect its reputation from harm.
Before this lawsuit, Laidlaw was the company’s primary investment banker. It was the financial advisor to Relmada in 2014 during its merger with Camp Nine, Inc. After that merger, Relmada became a public company. The latest filing results from a wish that Relmada expressed to Laidlaw seeking financial investment confidentially. However, Laidlaw released financial information of Relmada to third parties that were not part of the confidential discussions.
Laidlaw Frequently Flouts the Law
Laidlaw is an investment firm that operates under the stewardship of its two principles Matthew Eitner and James Ahern. The company has been sued numerous times for violation of securities laws bot at the state and federal level. The actions have led to censure and suspension by state regulators, the New York Stock Exchange and the SEC.
Within a period of 2 years starting in 2007, the company received over 60 complaints from customers and damages claims. Laidlaw entered into a letter of acceptance, consent, and waiver with FINRA in 2012. FINRA found that Laidlaw had willfully violated numerous regulations.