Recovery of Investment Losses involving FS Global Credit Opportunities Fund
Are you concerned about your investment in FS Global Credit Opportunities Fund? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
On March 23, 2022, FS Global Credit Opportunities Fund was converted from a Delaware statutory trust into a Maryland corporation and was renamed FS Credit Opportunities Corp, according to a proxy. The Fund currently anticipates that its shares of common stock will commence trading prior to the end of the third quarter or beginning of the fourth quarter of 2022 on the NYSE with the ticker symbol “FSCO”. The company notes that there is “no assurance that the Fund will be able to complete the listing within the expected time frame or at all.”
The fund reportedly invests primarily in global corporate credit, including loans, bonds and other credit instruments that companies use to finance their operations.
This week, Central Trade & Transfer offered shares of FS Global Credit Opp. Fund A for just $5.00 per share. This could indicate a loss for investors since the original offering price was $10.00/share. According to the company’s website, the current Net Asset Value (NAV) is estimated at $6.88/share as of September 12, 2022.
Investigating Potential Lawsuits
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for unsuitably recommending alternative investment products like FS Global Credit Opportunities Fund to investors.
The trouble with Business Development Companies (BDCs) such as FS Global Credit Opportunities Fund, is that they are complex and inherently risky products. According to its prospectus, an investment in this BDC involves a high degree of risk and may be considered speculative. Investors looking to sell BDCs, often have difficulty finding a buyer, and can suffer significant losses on the sale. They also tend to come with high sales commissions and fees.
Broker dealers are required to perform adequate due diligence on any investment they recommend. They must ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.
Despite the risks of investing in this type of alternative investment, brokerage firms continue to push investments such as FS Global Credit Opportunities Fund because of the high commissions associated with their sale and creation.
If you are concerned about your investment in FS Global Credit Opportunities Fund and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510 for a free consultation.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, please visit https://www.whitesecuritieslaw.com
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 Seattle, Washington.
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