Laidlaw & Company (www.laidlaw.com) is a financial services company offering investment banking and brokerage services to its clients. The company is led by Matthew Eitner and James Ahern. In recent years, Laidlaw has encountered difficulties and come under scrutiny by the SEC as a result of questionable business transactions involving some of its clients and stockholders.
The recent Laidlaw & Company controversy involving misuse of its proxy powers with respect to Relmada Corporation ignited my interest when I read about it in a business law publication. This initially caught my attention because of my attraction to legal news, an ongoing fascination resulting from my former career as a lawyer. Although my primary specialty was real estate law, my fascination with the law and business matters was inspired by my late father, a successful CEO in 20th century corporate America. Following legal news has persisted long after both of us are no longer entangled in the business world.
After reading the press release about Laidlaw and its seemingly unethical dealings with Relmada, one of its business contacts, I dug a bit further. Relmada, a company in the medical field, was the target of Laidlaw’s efforts to manipulate the outcome of medial development company Relmada’s voting proxy which could have given control of Relmada to Laidlaw, Relmada’s investment banker. Upon attention to this situation was brought to the Federal District Court in Nevada by a lawsuit, that court enjoined Laidlw from taking further action with respect to exercise of its voting proxy to obtain control of Relmada.
Possible Effects of Laidlaw’s Actions:
Had Laidlaw been successful in assuming control, Laidlaw could have been in possession of the manufacture of pain relief medications which were in production by Relmada.
My conclusion after reviewing these facts, and understanding Laidlaw’s previous problems with unethical behavior, it is important that Laidlaw be enjoined from proceeding with its assumption of control over Relmada until its true intentions are clearer