Avinger Inc. Securities Investigation
The White Law Group is investigating potential claims involving brokerage firms for the unsuitable sale and recommendation of investments in Avinger Inc. The company’s common shares of common stock are listed on the Nasdaq Capital Market under the symbol “AVGR”
Beginning in August 2019 through January 2021, Avinger Inc an “emerging growth company,” offered shares of its common stock for sale to investors. The total offering amount in the five separate offerings was $43, 500,000. As of February 28, 2024, the average post offering return was –97.14%.
According to MarketWatch, shares of Avinger Inc. (AVGR) have declined –86.95% in the past 12 months.
Avinger Inc. Background and Latest News
According to its prospectus, Avinger Inc. is a commercial-stage medical device company that designs, manufactures and sells image-guided, catheter-based systems that are used by physicians to treat patients with peripheral artery disease, or PAD.
A class action complaint that was filed on behalf of investors alleges that, on July 12, 2016, after the stock market closed, Avinger reported that it expected to realize lower-than-expected revenues for the second quarter 2016 of just $4.7 million. Avinger also reportedly lowered guidance for the entire year (2016) to between $19 million to $23 million, a significant reduction from the company’s previous guidance of $25 to $30 million.
Following this news, Avinger’s stock, which had closed on July 12, 2016, at $11.43 per share, declined by over $4.50, or 40%, on heavy volume of 2.6 million shares, to close at $6.89 per share.
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.
In addition to these risks, there are the risks associated with pharmaceutical and biotech investments. The research and development process for pharma companies often involves costly and lengthy testing trials that yield specific data. If the expected data or end points are not met, that could be bad news for investors.
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.
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.
Recovery of Investment Losses – Avinger Inc.
If you have suffered investment losses in Avinger 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 2, 2024
