Crain's Cleveland Business features lawsuit against leaders of biotechnology company filed by McDonald Hopkins 

Recently, Crain's Cleveland Business featured a lawsuit filed by McDonald Hopkins' Stephen Rosenfeld on behalf of clients. The suit, filed on Oct. 28 in U.S. District Court for the Northern District of Ohio alleges some key leaders at the Solon biotechnology company Locus Solutions engaged in fraud. 

An excerpt of the article, written by Crain's Cleveland Business reporter Jeremy Nobile, is below.

The lawsuit claims that company leaders have kept the business going through financial challenges — which investors were allegedly not clearly informed of — by repeatedly taking on debt.

As a result of the company allegedly defaulting on one of its loans, however, a restructuring plan reportedly was proposed that would effectively wipe out the equity and debt held by the plaintiffs, whose combined investments in the company may total around or more than $5 million.

Those investors are attempting to get their money back.

“The plaintiffs have lost millions of dollars and are on the verge of having their entire investments in Locus wiped out,” Rosenfeld said in a statement. “They filed their lawsuit for fraud and breach of fiduciary duty after they uncovered extraordinary details about the company’s management decisions and financial transactions. We think the allegations of the lawsuit speak for themselves.”

To read the full article, click here.