Laidlaw in deep waters again after the filing of amended complaint by Relmada Therapeutics
Relmada therapeutics has filed a motion to amend its initial complaint against Laidlaw and Company Ltd. in Nevada’s US District Court. The motion is a part of the lawsuit Relmada had initially filed against Laidlaw. The amended complaint now includes an additional legal claim on Laidlaw as the company’s investment bankers in breach of their fiduciary duty it owed to Relmada upon disclosing private confidential matters. Relmada is also seeking damages that the company had to incur due to Laidlaw’s misleading proxy materials in 2015.
The whole legal drama ensued in the spring of 2015 when Remalda started its discussions over attracting new customers after it became a public company with a merger with Camp Nine Inc. Laidlaw in its capacity was to organize a road show after it engaged in confidential discussions with Remalda’s about the company’s business and its future which was finished with a meeting with some insititutional investors. After the conclusion of these activities, Remalda conveyed its dissatisfaction with Laidlaw’s performance over their performing of the road show and attracting new investors plus its interaction with potential customers who entered into a confidentiality agreement with the company. In October 2015, Laidlaw sent a letter to the board and filed a schedule 13D with the SEC and disclosed confidential information concerning Remalda’s capital raising efforts and its interactions with institutional investors. The issue came to loggerheads with Laidlaw launching a legal battle to take over the company which led Remalda to take actions in the form of a motion filed against Laidlaw in the US District Court.
Laidlaw is an investment banking and brokerage firm providing its services to institutions and individuals across the US and the UK. Matthew D Eitner is the founder and CEO of Laidlaw while James P Ahern is the Managing Partner and Head of the Capital Markets for the company. The company was incorporated in England while its principal base is located in the New York City.
The firm has had a bad rap sheet of violating state and federal securities law and failing to comply with their guidelines. The company received more than 60 customer complaints and claims for damages from 2007 to 2009 for which it was sanctioned by FINRA for inadequate reporting of the said customer complaints. James Ahern, the MD has had his reputation questioned for willfully lying about his education and personally has more than four customer complaints since the time he joined Laidlaw in the year 2003.