Laidlaw & Company, a banking investment firm, continues to face legal troubles. Relmada Therapeutics, a pharmaceutical company developing a new chronic pain treatment, recently filed an addendum to the its lawsuit against the investment banking firm.
Relmada’s suit accuses the investment banking of causing financial harm to the company when Laidlaw & Company worked on behalf of Remalda. The addendum was filed in the same Nevada United States district court where the original lawsuit was filed. The suit claims that Laidlaw disclosed privileged information that hurt the Remalda’s sales.. The case centers around Remalda’s assertion that the investment banking firm disclosed false or misleading information in a proxy.
The Nevada District Court prohibited Laidlaw from issuing more materials and ordered the firm not to disclose any further information. At the moment, executives from Remalda are trying to decide the extent of the financial damage caused by the breach of confidential data.
Relmada plans to end its relationship with Laidlaw, and will soon seek a new investment banking firm. Their CEO sent a letter explaining the results of a recent vote and the outcome of the decision. Relmada further claims that its sales have been hurt by the early release of misleading data. The letter sent to stockholders claims that Laidlaw has taken other actions that violate federal law.