On December 11, 2015, Relmada Therapeutics, a clinical-stage company, announced that a court order had been issued against Laidlaw & Company, an investment brokerage company, by the U.S. District Court for the district of Nevada. The court order came on the heels of a lawsuit Relmada filed against Laidlaw and its principals, Matthew Eitner and James Ahern, for disseminating “false and misleading information” in the form of proxy materials.
Laidlaw’s spreading of false information was part of an effort to take effective control of Relmada, a move that Relmada CEO, Sergio Traversa, sees as harmful to the company and its stockholders, whose interests, he said, are different from those of Laidlaw’s. Traversa indicated that he would take necessary actions to protect Relmada and the interests of its stockholders. He also stated that the company needed to focus on the development of its products, such as Blu Tab, a drug for chronic pain relief. The court did not hesitate to take action in issuing the “restraining order with associated injunction to enjoin Laidlaw and its principals” from continuing to disseminate false and misleading information. The court also said that Laidlaw and its principals must also retract or correct the materials already disseminated.
Laidlaw & Company is an investment firm, offering investment banking and wealth management services in the United States and Europe. The firm has offices in the United States and in London. What recently happened should come as no surprise given that Laidlaw and its principals, Matthew Eitner and James Ahern, have a history of violating U.S. financial regulations and have had to pay penalties for such unacceptable behavior. Their actions have also caused customer dissatisfaction and complaints. It does seem that, at some point, someone would decide that enough is enough.
Apparently Laidlaw & company is not the most desirable place to work either. Many of its employees are unhappy. Morale seems very low.