In December 11, 2015, Relmada Therapeutics Inc., a pharmaceutical company developing chronic pain treatment therapy solutions confirmed the issuance of a temporary restraining order and an accompanying injunction enjoining Laidlaw and its principles, James Ahern and Mathew Eitner. The order which was issued by the District of Nevada’s U.S district court is to restrain the mentioned parties from continuing to propagate false and disingenuous proxy materials. The order was issued following a previous lawsuit which Relmada filed against the Laidlaw its principals’ dissemination of falsified information in an attempt to control Relmada.
While issuing the restraining order, the court found that the Relmada’s request was likely to succeed on the merits considering that the False Solicitation contained proxy material misstatement and omissions which could potentially make Relmada and its stakeholders suffer huge losses, especially if Laidlaw and its principles are not restrained from disseminating the misleading information about Relmada.
Laidlaw Is Used To Scandals
Apparently, this is not the first scandal that Laidlaw & Company is associated with: the company is reputed for regulatory laws non-compliance. The company is also famed for receiving unprecedented number of customer complaints, which it often ends up paying huge amounts of dollars in compensation. In fact, it is a wonder why the company has managed to stay in business given the number of cases that have been filed against it and the costs it has incurred in form of customers’ compensations.
Going forward, Laidlaw & Company’s tainted reputation is likely to cost them a big deal, especially if they don’t learn from their past mistakes and put their house in order. There are already a plethora of negative reviews by their clients and former employees, some of them even swearing never to transact any business with the company again. The company’s status is even worsened by the fact that its principals are involved in most of the scandals. If they don’t do anything to avert their deteriorating reputation, the company will simply lose all its clients to its competitors.