Hagens Berman urges RenovaCare, Inc. investors with significant losses to submit your losses. A securities fraud class action has been filed and certain investors may have valuable claims.
Class Period: Aug. 14, 2017 – May 28, 2021
Lead Plaintiff Deadline: Sept. 14, 2021
Contact An Attorney Now: RCAR@hbsslaw.com
RenovaCare, Inc. (RCAR) Securities Fraud Class Action:
The case arises from an alleged fraudulent promotional scheme orchestrated by RenovaCare’s controlling shareholder and Chairman, Harmel Rayat (“Rayat”), designed to artificially inflate company’s stock price.
Between July 2017 and Jan. 2018, RenovaCare and Rayat allegedly solicited StreetAuthority, LLC (“StreetAuthority”), a publishing company, to run a promotion. Rayat allegedly worked closely with StreetAuthority on the promotion, including providing false information to StreetAuthority regarding the efficacy of RenovaCare’s experimental burn-wound healing medical device called the “SkinGun,” editing StreetAuthority’s promotional materials, advising StreetAuthority on how to distribute the promotion to enhance its effectiveness, and arranged to pay StreetAuthority for the promotion using RenovaCare’s funds that were routed through third parties.
In addition, when the OTC Markets inquired about the promotional activities in Jan. 2018, 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.
The truth emerged on May 28, 2021, when the SEC sued RenovaCare and Rayat, alleging their active participation in the StreetAuthority promotional scheme.
This news sent the price of RenovaCare shares sharply lower.
“We’re focused on investors’ losses and proving RenovaCare and Rayat engaged in and concealed an illegal stock promotion scheme,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in RenovaCare and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding RenovaCare should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email RCAR@hbsslaw.com.
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