An amended complaint was recently filed in the U.S. District Court for the District of Nevada against Laidlaw & Company by Relmada Therapeutics. Relmada claims that Laidlaw & Company disclosed confidential information that was acquired when Laidlaw was serving as their investment banker.
In the initial complaint made by Relmada, a restraining order was filed against Laidlaw and its principals, Matthew Eitner and James Ahern. Relmada’s board claims that false materials were distributed by the investment bankers and they should be properly compensated for the damages.
Relmada Therapeutics Files Amended Complaint Against Laidlaw and Its Principals, Matthew Eitner and James Ahern
Laidlaw had served as the primary investment banker for Relmada since 2011 and in the spring of 2015 they engaged in talks about Relmada attracting new investors. In working to achieve this goal Laidlaw set up a non-deal road show in April of 2015. Upon the conclusion of the road show, Relmada expressed dissatisfaction to Laidlaw with both the organization of these events and the interactions with potential investors. As a response, Laidlaw sent out a letter which contained confidential information regarding Relmada’s efforts to raise capital and interactions with potential investors.
Since the letter containing confidential information was made public Relmada’s stock has seen a dramatic decline, going from $4.03 per share down to $1.65 per share. This makes for a significant argument that the damages to Relmada and its shareholders are a direct result of the actions of Laidlaw. Laidlaw & Company has been in the business of investment banking for over 170 years. They currently operate a network of offices in both the United States and Europe. Laidlaw credits themselves with a “think outside the box” approach to investment banking and financial solutions. CEO Matthew Eitner has been with Laidlaw since 2010 and became CEO in 2011. James Ahern serves as Managing Partner and has also been with the company since 2010.