RCAR.US
id: 1307
RenovaCare ($RCAR) Investor Settlement
D. New Jersey
Court2:21-cv-13766
Case number14 Aug 2017
Class period Start28 May 2021
Class period End$RCAR has agreed to a settlement with investors to resolve claims that it misled them by exaggerating the progress of its "SkinGun" technology and using paid promotions to inflate its stock price.
Outline
RenovaCare is accused of exaggerating the development of its "SkinGun" technology and failing to disclose its involvement in a paid promotional campaign, leading to significant financial losses for investors.
Timeline
- Between August 14, 2017, and May 28: RenovaCare frequently promoted the "SkinGun" technology, claiming it could revolutionize burn treatment, which boosted investor interest and the company’s stock price.
- January 2018: The SEC uncovered that a major shareholder secretly paid for a promotional campaign that exaggerated the effectiveness of the "SkinGun."
- June 2021: The SEC filed a complaint against RenovaCare for misleading investors and lying about its involvement in the promotion.
- July 2021: Following the SEC's revelations, RenovaCare’s stock dropped by nearly 25%, leading to significant investor losses.
Background
RenovaCare promoted its "SkinGun" technology as a revolutionary treatment for burn victims from 2017 to 2021. The technology was said to spray stem cells onto wounds to accelerate healing, which attracted significant investor interest and increased the company's stock price. However, in January 2018, the SEC discovered that a major shareholder, Harmel S. Rayat, had secretly funded a promotional campaign that greatly exaggerated the technology’s effectiveness. By June 2021, the SEC filed a complaint accusing RenovaCare of misleading investors and falsely denying their involvement in the paid promotions. This deception led to a 25% drop in the company's stock in July 2021, causing major financial losses for investors.
What can investors expect now?
Investors have filed a lawsuit against RenovaCare and its executives, accusing them of inflating the stock price through a misleading promotional campaign and falsely claiming progress on the "SkinGun" technology, has been resolved. Investors can now look forward to the outcomes of the settlement, which may include compensation for the losses incurred due to the deceptive practices.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Status
Tentative Settlement
Alleged Offence
Mismanagement,
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Filing date
16 July 2021
Plaintiffs
Diana Deidan
Attorneys
Hagens Berman Sobol Shapiro LLP (Berkeley, CA), Lite DePalma Greenberg & Afanador (Newark, NJ), Pomerantz LLP (New York, NY)
Defendants
Harmel Rayat, Thomas Bold, Lou Betancourt, Jeetenderjit Singh Sidhu, Sharon Fleming
Judge
Hon. Brian R. Martinotti
Administrator
A.B. Data Ltd
Trades matching type
FIFO