Nexus Fund A LLC Lawsuit Investigation: Investor Losses & FINRA Claims
The White Law Group is investigating potential claims on behalf of investors in Nexus Fund A LLC, a Nevada private fund. Investors weighing a lawsuit or complaint over a Nexus Fund A LLC investment can review what the fund’s SEC filing shows below, along with their options for recovery through FINRA arbitration.
What Is Nexus Fund A LLC?
Nexus Fund A LLC is a limited liability company formed in Nevada in 2024. The fund calls itself a pooled investment fund. It is not registered with the SEC as an investment company.
Nexus Fund A LLC Offering Terms
According to its Form D filed with the SEC on June 3, 2024, Nexus Fund A LLC sought to raise up to $10 million. The fund reported its first sale on May 2, 2024. At the time of the filing, it had sold $3,485,000 to 18 investors, with a $250,000 minimum investment. The Form D does not say what the fund invests in, and the fund declined to disclose its net asset value.
Third Seven Capital and Broker Due Diligence Obligations
The Form D lists Third Seven Capital LLC, a FINRA-registered broker-dealer based in Greenwich, Connecticut, as a finder in the offering. The fund reported $139,400 in finder’s fees, which equals 4% of the amount sold as of the filing. FINRA requires brokerage firms to investigate a private placement before recommending it. Brokers must also have a reasonable basis to believe the investment is in the customer’s best interest.
Risks of Private Placement Investments
Private placements are not registered with the SEC and do not trade on a public exchange. Investors may not be able to sell their interests when they need the money. Issuers also share far less information than public companies do. A newly formed fund like Nexus Fund A LLC has little or no track record for investors to review.
Nexus Fund A LLC Lawsuit and Recovery Options
Investors who lost money in Nexus Fund A LLC may be able to recover losses if a broker recommended an unsuitable investment. A claim may also be possible if the brokerage firm did not properly vet the offering. These claims are usually brought against the brokerage firm, not the fund.
Contact The White Law Group
The White Law Group, national securities fraud attorneys with offices in Chicago and Seattle, is investigating potential claims involving Nexus Fund A LLC. If you invested in this fund, call us at (888) 637-5510 for a free consultation, or contact us online. Learn more about our FINRA arbitration attorneys.
Frequently Asked Questions
How do I file a claim to recover money invested in Nexus Fund A LLC?
Most investors file a claim through FINRA arbitration against the brokerage firm that recommended the investment. Most brokerage account agreements typically include a pre-dispute arbitration clause, and many investors don’t know it exists. That is why these disputes usually go to arbitration instead of court, where a panel can still award money damages.
Why does it matter whether a private placement was suitable for me?
Brokers must recommend investments that fit your goals, risk tolerance, and need for cash. A $250,000 minimum in a fund with no public market can tie up a large share of an investor’s savings. If the recommendation did not fit your situation, that may support a claim.
Can the brokerage firm be held responsible for my losses?
Yes. A brokerage firm may be liable if it failed to vet an investment or failed to supervise its brokers. If a broker sold you the investment away from his or her firm without its approval, the firm may still be liable if it reasonably should have caught the activity.
