In the recent years, Laidlaw and company have had their share of lawsuits. However, the most recent lawsuit that has stood out is the lawsuit filed by the Relmada therapeutics. This is a lawsuit that was filed in December 2015.
For a long time, Relmada has worked together with the Laidlaw investment bank. The bank assisted Relmada with their business transactions. The relationship took a sour turn when Laidlaw published a press release following the meeting that Matthew Eitner and James Ahern held with the CEO of Relmada. The press release indicated that there was to be a proxy contest that was to be held to appoint new directors to the company. This is a decision that was not welcomed by Relmada. That is when they filed a lawsuit against the bank.
In Jan 2016, Relmada filed a motion that was meant to amend the complaint that they filed against the Laidlaw. The amended complaint included an additional legal claim that was based on the Laidlaw’s breach of their contract (the fiduciary duty) when they disclosed information that they acquired in confidence.
Relmada therapeutics is also seeking to monetary reimbursement for the cost and fees they lost from the proxy materials. The court has issued a restraining order against the bank’s principals Matthew and James.
The final thought
Laidlaw & Company is a well-known investment bank that has built its reputation for years. However, their recent actions against the Relmada therapeutics has made me question their business operations. Even though Relmada should have handled the case amicably, Laidlaw had no right to violate the fiduciary duty.
It was not the responsibility of the bank to seek a replacement of the directors. That was a violation of the independence of the company.
Laidlaw & company was founded in 1924 in Ontario Canada. The aim of the company is to provide investment banking services to different companies.