Securities Investigation: Comstock Mining Inc. (NYSE: LODE)
The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended Comstock Inc. to investors.
Background on Comstock Inc.
Comstock Mining Inc. is a producing, Nevada-based, gold and silver mining company with extensive, contiguous property in the historic Comstock and Silver City mining districts (collectively, the “Comstock District”).
In March 2016, Comstock Mining Inc. conducted a public offering of its common stock. However, as of February 28, 2024, the average return since the offering has been a significant -94.9%. The company’s stock trades on the NYSE under the ticker symbol “LODE.”
Performance: NYSE LODE
As of July 7, 2024, Comstock Inc.’s stock performance has been disappointing, with shares down -67.17% over the past 12 months, according to Market Watch.
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.
Unsuitable Investment Recommendations
Broker due diligence is a process undertaken by brokerage firms to ensure they are recommending and selling investment products appropriate for their clients. This process protects the interests of the brokerage firm and its clients by ensuring that the investments offered are suitable for the client’s investment objectives, risk tolerance, and financial situation.
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.
Class Action vs. Individual FINRA Arbitration Lawsuit
You may wonder whether a large class action lawsuit is a better litigation option than an individual FINRA arbitration case. The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option. Class actions as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.
Free Consultation with Securities Attorneys
If you have suffered investment losses in Comstock Mining Inc., you may have recovery options. 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 9, 2024
