GRABAR LAW OFFICE INVESTIGATES POTENTIAL SHAREHOLDER ACTION ON BEHALF OF CURRENT SHAREHOLDERS OF RENOVACARE, INC. (OTC: RCAR)
On May 28, 2021, the SEC issued a press release stating it had charged RenovaCare with securities fraud. The SEC filed a civil lawsuit against RenovaCare and its chairman and controlling shareholder, Harmel S. Rayat, in which the SEC alleged that RenovaCare and Rayat assisted in developing promotional materials, which included false and misleading statements designed to increase the company’s stock price, and paid for those materials through intermediaries to conceal the source of funds. The promotional materials ran between October 2017 and at least January 2018 and were correlated with a sharp rise in the price of RenovaCare stock. According to the complaint, in January 2018, OTC Markets Group, Inc. requested RenovaCare issue a press release to explain its relationship to the promotion. The complaint alleges that Rayat and RenovaCare then drafted and issued a press release and a Form 8-K that contained material misrepresentations and omissions denying Rayat's and the company's involvement in the promotion. The SEC's complaint charges Rayat and RenovaCare with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and also charges Rayat with aiding and abetting the company's violations of those provisions, among other things.
Unlike a class action, brought on behalf of damaged investors, a shareholder derivative action is an action brought by a shareholder of a public company on behalf of and for the benefit of the company itself against the directors and/or officers of that company. In a derivative action, shareholders “step into the shoes” of the directors and officers of a company and bring litigation that the board would be unwilling to pursue on its own.
RenovaCare shareholders who have held shares of the Company’s stock since August 14, 2017, can seek corporate reforms, the return of funds back to company coffers and potentially a court approved incentive award if appropriate.
If you would like to learn more about this matter at no cost to you, please fill out the form provided or contact us at firstname.lastname@example.org or call 267-507-6085. $RCAR
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