RM LAW, P.C. is investigating potential claims against the board of directors of RenovaCare, Inc. (OTC: RCAR) investors concerning the Company’s possible violations of the federal securities laws.
If you own shares of RenovaCare and would like to learn more about this class action or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here. You may also email Mr. Maniskas at rm@maniskas.com.
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.
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.
When the OTC Markets asked the Company about its actions, it issued a press release claiming no director, officer, or controlling shareholder had any involvement with the promotional materials developed by a supposed third party. The Company failed to maintain appropriate controls over disclosure. Based on these facts, the Company's public statements were false and materially misleading throughout the class period. When the market learned the truth about RenovaCare, investors suffered damages.