ECMOHO Ltd.: Securities Investigation

Have you suffered losses investing in ECMOHO Ltd at the recommendation of your financial advisor? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA lawsuit against your brokerage firm.

What is ECOMOHO Ltd?

Ecmoho (NASDAQ: MOHO), founded in 2011 and headquartered in Shanghai, is a comprehensive health service provider of health and wellness market, focused on providing brands with smart retail, global marketing, customer service, technical warehousing and fulfillment, etc. In 2014, the company reportedly became first-tier player in China’s cross-border healthcare e-commerce business, providing one-stop cross-border services for many international brands. The company was listed on NASDAQ in 2019.

In August 2021, ECMOHO Ltd. 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 –98.6%. The company’s common stock was traded on the NASDAQ, under the symbol “MOHO.”

As of December 23, 2022, the SEC posted this Notice of Termination by a Foreign Private Issuer of a class of equity securities under Section 12(b) filing.

Risks Associated with Small Stock Offerings 

There are numerous risks involved in investing in small stock offerings, including the following, among others:

Liquidity Concerns: These stocks may have low trading volumes, making it difficult to buy or sell shares at desired prices.

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.

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 ECMOHO Ltd., 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.