Relmada Therapeutics, a company developing new therapies for chronic pain, recently amended a lawsuit that they had filed in Nevada’s federal district court against Laidlaw & Company. Laidlaw was Relmada’s investment banker and financial advisor, and now Relmada is claiming that Laidlaw disclosed confidential information that it obtained as the company’s investment banker. A temporary restraining order was previously issued by the Nevada court against Laidlaw and Matthew Eitner and James Ahern, Laidlaw’s Chief Executive Officer and Managing Partner and Head of Capital Markets, to keep them from releasing further misleading and incorrect proxy materials. Now Relmada wants to recover damages from Laidlaw’s actions, which Remlada claims damaged the company.
Laidlaw & Company is a well-known investment and brokerage firm in London and New York that provides wealth management to clients worldwide. The firm’s legal problems, and Relmada isn’t the first, appear to stem from Laidlaw’s questionable choice of employees. From hiring brokers who resulted in their previous employer paying hefty fines for recommending unsuitable investments to hiring compliance officers who was previously fined for failing to adopt adequate compliance policies, Laidlaw’s human resources department does not appear to vet potential employees.
Laidlaw’s CEO Matthew Eitner and Managing Partner and Head of Capital Markets, James Ahern appear to, according to multiple current and previous employees reviews, claim to run a firm that caters to high net worth individuals, however, they have boilers rooms full of brokers cold calling individuals to generate sales. There are many people complaining online about unwanted calls from Laidlaw & Company where someone is pushing a “hot tip.” Employees also said they performed unnecessary trading to gain commissions. It’s hard to find a company with worse online reputation.