American CareSource Holdings Securities Investigation
The White Law Group is investigating Aegis Capital Corp. and other brokerage firms for the unsuitable sale and recommendation of investments in American CareSource Holdings Inc.
Aegis Capital Corp. reportedly underwrote the offering American CareSource Holdings, with a $7,500,000 offering on December 3, 2015, which has experienced a post-offering return of -100% as of February 28, 2024.
According to a recent analysis by the financial economics consulting firm SLCG, many offerings underwritten by Aegis Capital were issued by nano-cap companies on the brink of delisting and bankruptcy. Over 95% of Aegis Capital’s underwritings have underperformed the average microcap stock.
Background on American CareSource Holdings
The company provides urgent and primary care services branded as Go Now Doctors.
Risks Associated with Small Stock Offerings:
- Lack of Information: Many small companies may not provide comprehensive financial disclosures or have limited operating histories.
- Market Volatility: Small stocks can be more volatile than larger, established companies, leading to significant price fluctuations.
- Liquidity Concerns: These stocks may have low trading volumes, making it difficult to buy or sell shares at desired prices.
- Potential for Fraud: There’s a risk of fraudulent activities associated with some underwriters and issuers of small stock offerings.
Broker Responsibilities and Investor Protections
Broker dealers are required to conduct thorough due diligence on any investment they recommend and ensure that all recommendations are suitable for their clients. Firms that fail in this duty may be held liable for investor losses through FINRA arbitration claims.
If a broker or brokerage firm makes an unsuitable investment recommendation or fails to disclose the associated risks adequately, they may be found liable for investment losses in a FINRA arbitration claim. Fortunately, FINRA provides an arbitration forum for investors to resolve such disputes.
Recovery of Investment Losses
If you have suffered losses investing in the American CareSource Holdings, you may have the option to file a complaint against your brokerage firm. The securities attorneys at The White Law Group offer free consultations and can be reached at 1-888-637-5510.
About The White Law Group
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. The firm represents investors across the country in claims against their brokerage firms.
Last modified: August 1, 2024
