Relmada Therapeutics, Inc., filed a motion, in which they amended their complaint against Laidlaw & Company, with respect to a lawsuit they had filed, previously, within the Federal District Court in the State of Nevada. The complaint, was, summarily, amended, in order to include an added legal claim which was based upon Laidlaw’s breach of its fiduciary duty, owing to Relmada. The breach occurred when Laidlaw allowed disclosure of information of a confidential nature, which it had acquired, within its capacity as Relmada’s Investment Banking Organization.
Additionally, Relmada is seeking financial damages which arose, from fees and costs, incurred, when responding to Laidlaw’s misinformed and misleading press release, supplied to the general public, in December 2015.
Some stockholders, may recall, the Nevada court, issued a temporary restraining order, during a prior period, along with an injunction against the investment banking organization, as well as its principals. The restraining order was the result of the principals’ and banking organization’s misleading proxy materials, as it applied to Relmada.
The Board of Relmada, believes, the investment banking organization, should provide compensation, for the damages suffered, as a result of the negligence of their actions. It is further thought that Laidlaw, must be stopped, in harming Relmada Therapeutics, within the coming years.
Relmada, is in anticipation of the litigation, wherein, it can rightfully address the damages that the investment banker has caused it. The ultimate focus, of Relmada, is to spend its time and resources, in way of the continuation of the development plan of its product.
The plan, is already providing Relmada, with outstanding results. There is value, associated with the development plan, allowing for Relmada to realize future opportunities.
The above text, is summarization, of what was conveyed within correspondence, offered to its stockholders, during January of 2016. Background on the relationship between Laidlaw and Relmada (a.k.a. the Company) within the text, follows:
Laidlaw, from an historical standpoint, served in the capacity of the Company’s main investment banking organization. The investment banker, acted as the Company’s agent, during the company’s offerings of December, 2011 and May 2014. It also acted as agent to Relmada, when it merged with Camp Nine, Incorporated. The merger caused Relmada to become a public entity.
Relmada, next, discussed, with the investment banker, the possible activity of attracting new investors. The preceding discussion, occurred, during the Springtime of the year 2015. In response to the discussion, the investment banking organization, put together a Road Show in April 2015. There was no sort of deal-making associated with the road show. Laidlaw, confidentially, discussed with Relmada, its business interests, and futuristic financial prospects. It introduced the Company to a certain number of investors, interested in the Company and its products. The Company, subsequently, let Laidlaw know that it was truly unhappy with the performance of the investment banker, in how it organized the non-deal road show, with the purpose in mind, of attracting investors as well as its interactions with the investors, who had entered into confidentiality agreements, with Relmada. The revelation of the Company’s dissatisfaction was performed during the summertime of 2015.