Starting in 2015, Laidlaw took steps to make a hostile takeover against Relmada. Relmada was successful in defending itself against Laidlaw but not without suffering significant damages to the value of its stock price in the process. Relmada estimates that it suffered $75 million in damages due to Laidlaw’s nefarious activity. It is going to court to ask a judge to award it $20 million to make up for its severe losses.
The most damaging activity that Laidlaw took against Relmada occurred in October 2015. Laidlaw issued a statement in which it claimed that Relmada had denied a request by a potential investor for due diligence. Laidlaw also stated that Relmada had tried to attract institutional capital from investors but had not been able to do so. These claims made by Laidlaw are false and they were made for the purpose of damaging Relmada so that Laidlaw could perform a hostile takeover once the value of Relmada’s stock dropped significantly.
There is ample evidence to back up the claim that Laidlaw had been plotting against Relmada for a long time. The two companies once had a mutually respectful and beneficial relationship. Starting back in 2011, Relmada hired Laidlaw to be its financial advisor. Relmada is a clinical pharmaceutical company that is publicly traded and it requires financial advisement in order to navigate the stock and pharmaceutical markets. for 3 years Relmada was satisfied with Laidlaw, but in 2015 it became apparent that Laidlaw was acting with self-interest. The first evidence was when Laidlaw began to charge Relmada large fees for financial services that were of no value to Relmada. This may have been an attempt to gain more information that would be useful in a takeover attempt. Then Laidlaw placed a board member on Relmada’s board of directors who criminally withheld relevant information from Relmada. This and more is why Relmada seeks recompense against Laidlaw in the amount of $20 million.