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NEW YORK, Aug. 22, 2021 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against RenovaCare, Inc (“RenovaCare” or the “Company”) (OTC: RCAR) and reminds investors of the September 14, 2021 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $50,000 investing in RenovaCare stock or options between August 14, 2017 - May 28, 2021 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/RCAR.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Delaware, Pennsylvania, California and Georgia.
As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) at the direction of Rayat, RenovaCare engaged in a promotional campaign to issue misleading statements to artificially inflate the Company’s stock price; (2) 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; (3) as a result of the foregoing, the Company’s disclosure controls and procedures were defective; and (4) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On May 28, 2021, the SEC issued a litigation release stating that RenovaCare was being charged with alleged securities fraud. According to the complaint, between July 2017 and January 2018, 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,” by providing “false information to StreetAuthority regarding the efficacy of RenovaCare’s experimental burn-wound healing medical device.” Among other things, these promotional materials described a patient who purportedly recovered from severe burns in three days using RenovaCare’s SkinGun, when in reality, the “before” and “after” pictures were taken five years apart. The materials also claimed that SkinGun “could soon be approved by the FDA [U.S. Food and Drug Administration] . . . . RenovaCare has submitted a 510(k) filing to the FDA . . . .” However, at the time, the Company did not have a pending 510(k) application and had withdrawn its only application (seeking approval for use in clinical studies).
Rayat also arranged for monthly payments to the publisher “to be made through third parties for the fraudulent purpose of concealing Rayat’s and the company’s involvement.” According to the complaint, Rayat knew or was reckless in not knowing that the publisher was required to disclose payments from RenovaCare pursuant to Section 17(b) of the Securities Act of 1933, especially because in 2000, Rayat had settled a case with the SEC for violating the same statute.
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.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding RenovaCare’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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