Relmada Therapeutics has brought a lawsuit against Laidlaw. Relmada has made accusations against Laidlaw that implicate it in wrongful conduct as well as corrupt behavior. Laidlaw has allegedly published fraudulent materials and made efforts to manipulate Relmada’s stock price. As a result of Laidlaw’s nefarious activity, Relmada has suffered $75 million in damages to its stock price. Laidlaw took these actions as part of a ploy that would allow them to assume control over Relmada and have it be a puppet that they could use to earn advisory and banking fees.
Relmada is a pharmaceutical company that is publicly traded and operates at the clinical stage. Laidlaw is an investment bank that operates at the middle level and also functions as an advisory firm. 2 of its principals are Matthew Eitner and James Ahern. Laidlaw at one point in time earned sizeable monetary fees through work it did for Relmada. they had a relationship between 2011 and 2014. But in the year 2015, Laidlaw was charging fees for services that were not in Relmada’s best interest, Relmada claims. Relmada made an effort to stop these fees by setting up roadblocks to curb them. Relmada’s chairman of the board also distanced himself from Laidlaw because he lost confidence in them when he saw that they were working towards self-serving goals.
Laidlaw had one of its members on Relmada’s Board. NASDAQ made revelations to Relmada that Laidlaw’s board member had participated in malpractice, insurance fraud, civil racketeering, and other crimes against Relmada. He was fired from Relmada’s board after that. Now that their hand had been revealed Laidlaw resorted to more aggressive measures to try and take control of Relmada. They made false statements that claimed Relmada had failed to attract institutional capital and that Relmada had also failed to do due diligence at the request of an investor. For all these crimes, Relmada seeks $20 million in damages against Laidlaw.