Digital Ally Inc. to Sell HQ to Pay Debt

The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended Digital Ally Inc. to investors.

What is Digital Ally Inc.?

Digital Ally, Inc. (NASDAQ: DGLY) produces and sells digital video imaging, storage, and disinfectant and related safety products for use in law enforcement, security, and commercial applications in the United States. Digital Ally, Inc. was founded in 2004 and is headquartered in Lenexa, Kansas.

In February 2020, Digital Ally Inc. offered shares of its common stock for sale to investors.  The offering was reportedly underwritten by Aegis Capital Corp. As of February 28, 2024, the average post offering return was –91.3%. The company’s common stock was traded on the Nasdaq Capital Market, or NASDAQ, under the symbol “DGLY.”

Digital Ally must sell Lenexa HQ to pay off Debt

As of August 5, 2024, according to the Kansas City Business Journal article, Digital Ally is selling its headquarters in Lenexa, Kansas, to pay off outstanding debt. The company’s financial situation has reportedly led to the decision to put its prime location, off Interstate 35, on the market.

This move aims to settle a note, part of efforts to manage ongoing alleged financial struggles. The company has been involved in various business ventures, but the sale of its headquarters marks a significant step to address its financial obligations.

As of August 13, 2024, according to Market Watch shares of Digital Ally, Inc. were down -63.45% over the last 30 days, and down -77.46% over the last 12 months.

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.

Broker Due Diligence

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

If you have suffered investment losses in Digital Ally 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.