A securities class action has been filed against RenovaCare, Inc. (RCAR) on behalf of persons and entities that purchased or otherwise acquired RenovaCare securities between August 14, 2017 through May 28, 2021. This case has been filed in the USDC – NJ.
On May 28, 2021, the United States Securities and Exchange Commission issued a litigation release stating that RenovaCare was being charged with alleged securities fraud. According to the complaint, “Harmel S. Rayat, RenovaCare’s controlling shareholder, 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 OTC Markets Group, Inc. requested RenovaCare to explain its relationship to the promotion, the complaint alleges that “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, RenovaCare’s stock price fell $0.22, or 9.09%, to close at $2.20 per share on June 1, 2021.