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Laidlaw & Company And Growing Mistrust

Laidlaw & Company is an independent investment banking and securities brokerage firm. Established over 170 years ago, it has created a network of service providers in both the US and Europe.

Laidlaw markets itself as a firm for all, with a primary focus on the healthcare and mining industries. The company website stresses its workforce’s strong work ethic, and ability to “think outside the box”. The retail sales force is praised for its expertise in helping emerging companies secure the funding to become established and even expand.

Despite all the success, the company suffers from a history of regulatory failures. On multiple occasions, Laidlaw & Company has been fined and censured for non-compliance with a number of federal regulations. Most recently, there has been a violation of the Bank Secrecy Act, which calls for maintenance and review of company emails, a clear privacy policy, and an enforcement of employee training and supervisory procedures. Another complaint detailed the company’s unfair and unreasonable fees and commissions on certain transactions. In both cases, the company’s chief executives, Matthew Eitner and James Ahern, consented to fines and sanctions without admitting any blame.

Perhaps the single largest issue facing Laidlaw is the temporary restraining order issued against it in December 2015, as a result of litigation involving Relmada Therapeutics. Relmada Therapeutics researches diseases of the central nervous system, with the goal of developing innovative treatments for chronic pain. Laidlaw had previously served as Relmada’s investment banker but was accused of releasing false information in an effort to take over Relmada’s operation and invesstments. This legal action not only named Laidlaw & Company but specifically included Eitner and Ahern in the suit.

Relmada’s lawsuit was recently refiled in 2016 and so the cloud of mistrust continues to follow Laidlaw & Company.

Here are the sources I used:
http://laidlawltd.com/company

https://www.thestreet.com/story/13394818/1/us-federal-court-issues-temporary-restraining-order-against-laidlaw-company-and-its-principals-matthew-eitner-and-james-ahern.html

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