RenovaCare, Inc. (RCAR) Had Defective Disclosure Controls and Procedures that Caused its Stock Price to be Materially Inflated
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 OTC Markets Group, Inc. requested that RenovaCare 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, 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.
If you purchased shares of RenovaCare, Inc. (RCAR) between August 14, 2017 and May 28, 2021, you have until September 14, 2021, to ask the court to appoint you lead plaintiff for the class.
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