Relmada Therapeutics is a company that develops therapies to treat chronic pain. On January 26, 2016 the company decided to file a complaint against Laidlaw and Company Ltd. Laidlaw and Company Ltd. is an investment banking firm. They do investment banking for private and public businesses. According to their website, the company has connections with many high net worth investors.
The amended complaint is a follow up complaint to the one Relmada Therapeutics filed in November 2015. In the complaint Laidlaw is accused of breaching their duty in keeping confidential information as they are the Relmada Therapeutics investment bankers. The Relmada company additionally is seeking monetary compensation to cover the court costs of Laidlaw providing false data as evidence that they did not breach their duty.
The Relmada company was even forced to file a restraining order against Laidlaw and the principles of the company. The Relmada board expects the Laidlaw company to pay for their court time. The board also expects to be paid for the breached contract and the way the Laidlaw company has damaged Relmada Therapeutics.
The reason behind the filed complaint are varied. Relmada Therapeutics wrote that the Laidlaw investment company has demanded to be permitted to choose Relmada’ board members. After complaining about the company engaging in breaking confidentiality, the Relmada company has been set back. They appear to have lost more money because of Laidlaw 13D filing. Relmada is also distracted from their work creating chronic pain treatments because they are focused on this case. This has caused them to lose even more money. Last of all, there is a long history of evidence that the Laidlaw company violated many state and federal laws. They have been reported by over 60 clients for damages. This led to them being sanctioned by FINRA. They have created false information in their communications with clients. The company has even failed to report to FINRA even after they were sanctioned.