Investigating Potential Claims involving Cytori Therapeutics Inc.
The White Law Group is investigating potential securities claims involving broker-dealers who may have unsuitably recommended Cytori Therapeutics Inc. to investors.
Cytori Therapeutics is a cell therapeutic/device company focusing on autologous adipose-derived stem and regenerative cells (ADRCs) driven cell therapies to treat cardiovascular disease and soft tissue disorders.
In November 2017, Cytori Therapeutics, Inc. (NASDAQ:CYTX) closed its rights offering to subscribe for units at a subscription price of $1,000 per unit, according to a press announcement.
The company reportedly sold an aggregate of 10,000 units consisting of an aggregate of 10,000 shares of Series B Preferred Stock and 18,000,000 warrants, with each warrant exercisable for one share of common stock at an exercise price of $0.3333 per share, resulting in gross proceeds to Cytori of $10.0 million.
Laidlaw and Company was the underwriter for the offering, according to the news release.
Unfortunately for investors, while Cytori was trading at $47 in 2014, the company saw steep declines in 2018 when it was selling for just $0.28 per share, according to MarketWatch. The company changed its name to Plus Therapeutics (PSTV) in July 2019, citing a need for a new identity, according to a press annoucement.
According to Market Watch as of November 20, 2020, shares of PSTV closed at $2.21 per share.
The problem with pharmaceutical and biotech investments is that they typically involve a high degree of risk. 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 dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.
If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment 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 are concerned about your investment in Cytori Therapeutics Inc., you may be able to file a complaint against your brokerage firm. Please contact the securities attorneys at The White Law Group at 1-888-637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois. The firm represents investors throughout the country in claims against their brokerage firm.
For more information on the firm and its representation of investors, visit ?www.WhiteSecuritiesLaw.com.
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, PSTV stock Last modified: December 7, 2020