The potentially damaging court case against Laidlaw and Company that was filed by Remalda Therapeutics took an interesting turn when the U.S. District Court for the District of Nevada granted the complainant’s wish to grant a restraining order preventing the defendant’s Principals Matthew Eitner and James Ahern from inflicting further damage to the clinical-stage company. Eitner and Ahern are accused of providing Relmada, a therapeutics company involved in the research and development of novel cures for the treatment of chronic pain, with false proxy materials with the aim of gaining financial advantage. Relmada also wanted the court to compel the investment bank to compensate the drug company for the caused defendant.
In addition to Relmada’s wish to be compensated for the financial damages caused by Laidlaw & Company’s dishonesty, Relmada also filed a case suing for defamation/business, defamation per se, and tortious interference. Messrs. Eitner and Ahern were accused of trying to take effective control of Relmada and denting Relmada’s image by serious breach fiduciary agreement. The two principal’s malicious move to release Relmada’s confidential information led to the sharp decline of the value of Relmada’s stock. The charges are serious; as a result of misstatements and deliberate omissions, Relmada’s shareholders incurred irreparable damage.
For the large investment company, its seventeen year reputation as a reliable investment partner could suffer serious damage as a result of this charge. Additionally, all signs indicate that the partnership is over between the firm and Remalda, one of its best clients. Should the court rule against Laidlaw & company, there’s no telling the amount the extent of the devastation the firm will suffer. For Relmada, however, the interests of the shareholders come first, and the clinic is ready to ensure Laidlaw & Company does not get away with the crime.