Document Security Systems Inc. (DSS Inc.) 1-for-20 Reverse Stock Split

The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended Document Security Systems Inc. (DSS Inc.) to investors.

What is Document Security Systems, Inc.?

Document Security Systems, Inc. (NYSE American: DSS), a multinational company operating business segments in blockchain security, direct marketing, healthcare, consumer packaging, real estate, renewable energy, and securitized digital assets, changed its name to DSS, Inc. in September 2021.

In June 2019, Document Security Systems 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 –99.3%. The company’s common stock was traded on the New York Stock Exchange, or NYSE, under the symbol “DSS.”

1-for-20 Reverse Stock Split: DSS Inc.

As of December 22, 2023, according to a Globe Newswire article, DSS, Inc. (NYSE American: DSS), a multinational company “operating nine (9) diversified business lines developed through strategic acquisitions to build shareholder value through periodic spinoffs to its shareholders,” reportedly announced that it will proceed with a 1-for-20 reverse stock split of its issued and outstanding shares of common stock, par value $0.02.

This significant 1-for-20 reverse stock split may indicate underlying risks or instability, which could raise concerns among investors.

As of August 13, 2024, according to Market Watch shares of DSS, Inc. were down -43.55% 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 Document Security Systems Inc. (DSS 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.