Relmada is a major pharmaceutical company. It recently filed a lawsuit against Laidlaw and Company. The lawsuit was filed in the Nevada court. It stated that Laidlaw violated its duty to Relmada. Relmada agreed to hire Laidlaw, but they violated their duty. The lawsuit took another turn to new claims made by Relmada. It concerns materials that Relmada furnished with Laidlaw. Relmada stated that the materials were misleading. It further violated fiduciary law that required Laidlaw to act in the interest of Relmada.
The lawsuit involves different procedures. Relmada is looking for damages lost. The losses occurred after Laidlaw released misleading information about Relmada. The court system has also issued an injunction. It bars Laidlaw from releasing additional materials. Materials will only be released after the lawsuit is settled. A victory in the lawsuit will be a win for Relmada. However, it is going to be a major blow to Laidlaw and its heads, James Ahearn and Mathew Eitner.
Board of directors at Relmada stated reasons they decided to take action. They are trying to protect the company. The interest of stakeholders is also at hand. Laidlaw has practiced fraudulent activities in the past. In December 2015, Laidlaw received a restraining order after releasing misleading proxy materials. The case ended on January 2016.