Laidlaw has been known to court controversy in their dealings as an investment banking entity. The last time they made the news, it was because some clients were complaining about malpractices from the investor. Things took a turn when the company completely refused to address the issue and it had to take the intervention of FINRA and sanctions to get them to address the issue.
Many may have thought that the experience gave some wisdom to the two men at the helm of Laidlaw and Company (Matthew Eitner and James Ahern). Unfortunately, it seems like they still have a lot to learn because just the other day, they got themselves into another lawsuit. This time round, it is with a clinical stage company that has been using them as their investment banker since 2014.
The company, Remalda therapeutics claims that Laidlaw has acted in a manner that really hurts the reputation of their company and is causing them losses. Laidlaw released some documents that were supposed to be confidential into the public domain, something that has brought down the stock prices of Remalda’s IPO shares. Remalda is not taking this gross contravention of fiduciary laws slightly. They have decided to amend the lawsuit they had initially filed against Laidlaw and included the fiduciary damages.
The company, Laidlaw operates in New York but is incorporated in the UK. The two men who lead the company are Mathew Eitner and James Ahern, both are infamous for the use of underhand tactics to bring down companies that challenge their practices. Their actions are in contravention with the SEC laws.
Remalda on the other hand is a clinical stage company that looks into possible cures for chronic pain. The company has informed their client about the lawsuit and expects that they will get a favorable ruling on the issue as soon as possible.