Relmada Therapeutics Takes Action Against Laidlaw

Relmada Therapeutics has filed an amended complaint against Laidlaw. The original complaint filed in the Nevada District Court was for the false information that Laidlaw & Company released through press releases in December of 2015. Laidlaw alleged that they were in the process of taking over Relmada Therapeutics by naming the majority of the board of directors.

The amended complaint is directed against Laidlaw and its two principals. They are James Ahern and Matthew Eitner. The complaint alleges that Laidlaw not only spread false and misleading information about Relmada Therapeutics that damaged the company’s value, but that Laidlaw actually did not fulfill its obligations as Relmada’s investment banker.

Relmada Therapeutics states that Laidlaw did a poor job in attracting new investors and did not interact well with interested investors. This led to a loss of investment opportunities. Laidlaw also revealed confidential information about Relmada Therapeutics that it had access to as the company’s investment banker. False information spread by James Ahern and Matthew Eitner led to the drop of stock prices of Relmada even though the company was developing new products and growing.

It is important to note that Laidlaw & Company has a long history of violations of securities laws and dishonest behavior.  This predecessor of Laidlaw and Company has been fined and suspended by the Securities and Exchanges Commission, the New York Stock Exchange. It has also been found to be in contempt of federal and state securities laws.

Its two chief principals, James Ahern and Matthew Eitner also have a shady record. James Ahern as had complaints against him for, fraud, breach of fiduciary duty and failing to live up to contractual obligations. All four complaints have been settled with payments. It is also important to note that James Ahern does not have any college degree and only has a high school diploma.