Relmada Pharmaceuticals Files Breach of Fiduciary Duty Lawsuit Against Laidlaw & Company (UK) For $20 Million

The investment firm, Laidlaw & Company (UK) Ltd., maintained a healthy relationship with Relmada Pharmaceuticals for nearly a half-decade until events revolving around a roadshow, held in April 2015, caused their dealings to sour. The board of directors for Relmada Pharmaceuticals hoped that the roadshow would yield a large group of new investors; at the conclusion of the tour, Laidlaw & Company (UK) Ltd. had not satisfied the company’s expectations. Adding to the controversy, one investor entered into a “confidentiality agreement” with both companies, which was allegedly mishandled by Laidlaw & Company when they refused to grant information which the investor asked for as part of due diligence. According to accusations levied by the plaintiff, Laidlaw & Company reacted to the pharmaceutical company’s negative feedback by filing a form 13-D with the Securities and Exchange Commission, in which the defendant disclosed confidential information about fundraising and dealings with high-level investors.

Relmada’s recent SEC 8k filing further states that the lawsuit escalated when Laidlaw & Company “pursued a scheme to reassert themselves and take control of Relmada for their own enrichment.” According to the formal motion documentation, it seems that the majority of accusations levied in the 13-D form were unsubstantiated and potentially falsified. As remuneration for what the plaintiff views as an egregious and deliberately, illegal act, Relmada Pharmaceuticals have filed a lawsuit to ask for over $20 million in damages, seeking to hold the individual executives of Laidlaw & Company personally liable, in the event that the corporation of Laidlaw & Company cannot fulfill the financial obligations of losing this motion.

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