Relmada vs Laidlaw & Company: A Battle for Control
In a press release dated Dec. 11, 2015, PRNewswire reported that the U.S. District Court of Nevada had issued a temporary restraining order against Laidlaw & Company, a United Kingdom financial firm and its two principal officers Mathew Eitner and James Ahern from disseminating false and misleading proxy materials concerning Relmada Therapeutics, Inc. Read the entire article about the effects of the press release in PRNewswire as reported by The Street.
Relmada was brought public by Laidlaw, but the relationship has soured since the initial public offering. It is Laidlaw’s position that their efforts in the IPO should afford more board control to Laidlaw, but Relmada objected.
Relmada is a drug company investigating new therapies for the treatment of chronic pain.
While Relmada is a new company, Laidlaw has been operating in the financial field for more than 170 years. There will always be disharmony between brokerage firms and clients when the investment positions selected fail to materialize as planned. Relmada seems to be caught in an awkward situation; their operating costs seem to be outpacing their income and investments, and a continuation of this direction will result in their stock losing value.
The reputation of any financial firm is of utmost value to its officers and this fight between Laidlaw and Relmada may only be a typical power struggle between two diverse parties. Stockholders of Relmada are in the most difficult position, and close monitoring of the progress of this dispute and the earnings of Relmada and the stock price are in order.