SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP is investigating RenovaCare, Inc. (OTC: RCAR) to determine whether RenovaCare officers and directors violated the Securities Exchange Act of 1934 and breached their fiduciary duties to shareholders. Since its inception, RenovaCare has generated no revenue and has no commercialized products. Its activities consist primarily of research and development, business development, and capital raises.
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RenovaCare, Inc. (RCAR) Charged with Securities Fraud
According to a class action complaint filed on behalf of RenovaCare shareholders, on May 28, 2021, the SEC issued a release stating it had charged RenovaCare with securities fraud. According to the SEC’s complaint, between July 2017 and January 2018, the Company’s controlling shareholder and Chairman, Harmel Rayat (“Rayat”), “arranged, and caused RenovaCare to pay for, a promotional campaign designed to increase the company’s stock price.” Specifically, “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.” When asked to explain its relationship to the promotion, “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.” On this news, the Company’s stock price fell $0.66, or 24.8%, over three consecutive trading sessions to close at $2.00 per share on June 2, 2021.
RenovaCare, Inc. (RCAR) shareholders have legal options. If you own shares of RenovaCare, Inc., contact us for more information about your rights.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
Contact us to learn more:
Aaron Dumas
(800) 350-6003
adumas@robbinsllp.com
Shareholder Information Form
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against RenovaCare, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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