San Diego, CA -- (SBWire) -- 08/03/2021 --An investor, who purchased shares of RenovaCare, Inc. (OTC: RCAR), filed a lawsuit over alleged violations of Federal Securities Laws by RenovaCare, Inc.
Investors who purchased shares of RenovaCare, Inc. (OTC: RCAR) have certain options and for certain investors are short and strict deadlines running. Deadline: September 14, 2021. OTC: RCAR investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
Roseland, NJ based RenovaCare, Inc., a development-stage biotech and medical device company, focuses on the research, development, and commercialization of autologous cellular therapies for use in medical and aesthetic applications.
On May 28, 2021, the United States Securities and Exchange Commission ("SEC") published a litigation release indicating the RenovaCare, Inc. was being charged with securities fraud. Specifically, the complaint referenced in the litigation release, filed in federal court in the Southern District of New York, alleges that in July 2017, Harmel S. Rayat, RenovaCare's controlling shareholder, arranged, and caused RenovaCare to pay for, a promotional campaign designed to increase the company's stock price." The complaint alleges that "Rayat was closely involved in directing the promotion and editing promotional materials, and arranged to funnel payments to the publisher through consultants to conceal RenovaCare's involvement in the campaign" and according to the complaint, "in January 2018, OTC Markets Group, Inc. requested RenovaCare issue a press release to explain its relationship to the promotion." Finally, 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" and 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." The complaint also charges RenovaCare with violating the reporting provisions of Exchange Act Section 15(d) and Rules 15d-11 and 12b-20 thereunder.
Shares of RenovaCare, Inc. (OTC: RCAR) declined to as low as $1.45 per share on June 2, 2021.
The plaintiff claims that between August 14, 2017 and May 28, 2021, the Defendants failed to disclose to investors that, at the direction of Rayat, RenovaCare engaged in a promotional campaign to issue misleading statements to artificially inflate the Company's stock price, that, when the OTC Markets inquired, RenovaCare and Rayat issued a materially false and misleading press release claiming that no director, officer, or controlling shareholder had any involvement in the purported third party's promotional materials, that, as a result of the foregoing, the Company's disclosure controls and procedures were defective, and as a result, Defendants' statements about its business, operations, and prospects were materially false and misleading and/or lacked reasonable basis at all relevant times.
Those who purchased shares of RenovaCare, Inc. (OTC: RCAR) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com
About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
OTC:RCAR Investor Notice: Lawsuit Alleges Securities Laws Violations by RenovaCare, Inc
A lawsuit was filed on behalf of investors in RenovaCare, Inc. (OTC:RCAR) shares over alleged securities laws violations.