A US investment bank is suing Gareth Sheridan for fraud and breach of contract.
The bank and its law firm filed the lawsuit against presidential hopeful Sheridan, his company Nutriband and several other defendants, with one, Vitalie Botgros, described as having "an unfortunate, long history of illegal and otherwise improper conduct”.
Investment bank Joseph Gunnar & Co and its law firm Lucosky Brookman LLP claims Sheridan’s company broke an exclusive agreement to raise funds through a public stock offering. Nutriband denies the allegations and has filed a countersuit seeking $1 million for each of its claims.
According to the complaint, Nutriband signed an engagement letter in April 2023 hiring Joseph Gunnar to run a $4 million sale of company stock.
As part of the deal Nutriband agreed not to pursue other fundraising during the engagement period.
The plaintiffs claim that in July 2023, when the offering was ready to proceed, Nutriband withdrew the deal and instead completed an alternative $3 million fundraising with another party.
Joseph Gunnar alleges this violated its exclusive agreement with Nutriband and seeks more than $500,000 in damages plus legal fees.
Nutriband, denying these allegations, accuses the bank of intentional interference and breach of fiduciary duty. In court documents, Nutriband has argued the engagement letter was "unenforceable" and that its termination was "legally justified”.
The case remains in discovery phase and has not yet proceeded to trial.
According to Nutriband's latest quarterly filing with the Securities and Exchange Commission, the plaintiffs proposed a settlement offer of $100,000 in early 2024 but Nutriband has not responded to that settlement offer.
The Ditch reported yesterday that Sheridan's company paid $50,000 to an Israeli hospital that trains Israeli military personnel as part of a medical technology deal.
Today The Ditch revealed that a director of Sheridan's biotech company controls a weapons factory under investigation by Romanian authorities over national security concerns.
Sheridan has been contacted for comment.
