Concerned about your investment in Echo Therapeutics, Inc.?
Concerned about investment losses in Echo Therapeutics, Inc.? The securities attorneys at The White Law Group may be able to help you recover your losses through a FINRA arbitration claim against the broker-dealer that recommended the investment.
Echo Therapeutics Inc. is a specialty transdermal therapeutics and diagnostics company. The company filed a form D to raise capital from investors in 2016, according to filings with the SEC. The total offering amount was purportedly $6,000,000.
According to a Form 8-K filing in April 2017, due to its poor financial condition the company was unable to make payments on the 10% senior secured convertible notes.
Echo Therapeutics noted that after engaging in prolonged discussions to obtain new financing and obtain appropriate forbearance and/or waivers from the investors holding Notes, it was unsuccessful in raising financing. The Company further noted it was unable to pay rent, pay staff, and was also at risk of losing its patents.
(Note: Investors should check the most recent share price, as it may have changed since this report.)
Filing a Complaint against your Brokerage Firm
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly recommending high-risk investments to investors.
The problem with pharmaceutical investments such as Echo Therapeutics, Inc. 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 you have concerns regarding investment losses in Echo Therapeutics, Inc., please call the securities attorneys at The White Law Group for a free consultation at 888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://whitesecuritieslaw.com.
FAQs
1. Why is Echo Therapeutics, Inc. under investigation?
The White Law Group is investigating whether brokerage firms improperly recommended investments in Echo Therapeutics, Inc. Despite raising $6 million from investors in 2016, the company faced severe financial issues by 2017, including defaulting on debt, inability to pay staff or rent, and risk of losing its patents—raising concerns about whether brokers adequately disclosed these risks.
2. Why are pharmaceutical investments like Echo Therapeutics considered risky?
Pharmaceutical companies often face high development costs, long testing timelines, and uncertain outcomes. If clinical trials fail or funding runs out, investors can lose most or all of their investment. Echo Therapeutics is an example of such risk—its financial troubles led to a complete breakdown of operations.
3. Can I recover losses from investing in Echo Therapeutics?
If your broker recommended Echo Therapeutics without properly assessing your financial profile or disclosing the risks, you may be eligible to recover your losses through a FINRA arbitration claim. The White Law Group offers free consultations to help determine whether you have a valid recovery case.
