Private Placement investments are securities being offered through an investment firm that are not publicly available. In order to qualify for a purchase in a private placement the investor must meet the Securities Act of 1933 and SEC Regulation D requirements. In order to invest a purchaser will be required to fill out a subscription agreement and will receive a private placement memorandum (“PPM") detailing the fund specifics. Once purchased, an investor will not be able to sell the investment and may have restricted rights to demand back investor principal.
Many of our clients have found themselves involved in complex private placement deals that were not adequately explained or were unsuitable for their investment strategy. Common claims include:
- The risks of the fund were not properly explained by the broker or stated in the PPM upon initial investment.
- The client did not receive a PPM prior to making their investment
- The broker failed to disclose the client's rights under the PPM that would have allowed an investor to mitigate their damages.
- Failure of the fund to provide promised financial statements of operation or documentation.
Typically our clients are frustrated by the lack of information regarding their investment. Since an investors broker is often the only avenue for information and updates on the status of the fund, a long delay in reporting information or the failure of the fund without explanation can be startling. Negative developments on the fund are often compounded with by the prior reassurances our clients have received regarding the safety of their investment.
Why Come to Napoli Bern Ripka, LLP?
Napoli Bern Ripka, LLP, has been highly successful in arbitrating claims involving structured products. With numerous FINRA arbitrations filed on behalf of our clients Napoli Bern Ripka, LLP is a recognized leader in advocating for defrauded investors. Napoli Bern Ripka, LLP has been successful in cases involving complex structured products. If you purchased an equity linked note believing that your principal would be protected and have suffered a financial loss as a result then tell us about your claim.
