RenovaCare Officers and Directors Under Investigation for Alleged Fraudulent Promotional Scheme

Schubert Jonckheer & Kolbe LLP is investigating potential securities fraud and derivative claims on behalf of shareholders of RenovaCare, Inc. (RCAR) relating to an alleged fraudulent promotional scheme.

The U.S. Securities and Exchange Commission recently filed a civil lawsuit against RenovaCare and its chairman and controlling shareholder, Harmel S. Rayat, for an alleged scheme to generate interest in the company’s stock through the placement of paid promotional materials designed to look like independent analyst reports. The SEC alleged that RenovaCare and Rayat assisted in developing the promotional materials, which allegedly included false and misleading statements, and paid for them through intermediaries to conceal the source of funds. The promotional materials ran between October 2017 and at least January 2018 and were correlated with a sharp rise in the price of RenovaCare stock. When confronted by OTC Markets in January 2018 to explain their promotional activities, RenovaCare and Rayat issued what the SEC described as a “materially false” press release denying any involvement in the scheme.

The Schubert Firm is investigating potential securities fraud and breaches of fiduciary duty by the company’s officers and directors in connection with these allegations.

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