Update on Securities Investigation: Greenbacker Renewable Energy Company
The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended Greenbacker Renewable Energy Company to investors.
According to its website, Greenbacker Renewable Energy Company (GREC) is a publicly reporting, non-traded limited liability company that acquires and manages income-generating renewable energy and other energy-related businesses. The company filed a Form D to raise capital from investors in 2018. The total offering amount sold was purportedly $36,520,914.
On May 23, 2022, the company reportedly announced that it reached an agreement to internalize its external advisor for a package of consideration comprised of 24.4 million Class P-I Common shares and 13.1 million Class EO shares.
The Class P-1, and Class EO shares, are reportedly valued at approximately $221.4 million based on an NAV per share of $8.798. Class EO shares will allegedly not participate in distributions until certain performance hurdles are met, according to filings with the SEC. Shares of Greenbacker were purportedly originally sold for $10 per share in 2014.
According to a filing on May 10, 2022, the company reportedly had 177.5 million shares outstanding, indicating that the share consideration for the Internalization represents 21.1% of outstanding shares.
Potential Lawsuits to Recover Financial Losses
The White Law Group is investigating potential claims involving brokerage firms who may have improperly recommended high-risk private placements to investors. See more: Greenbacker Renewable Energy Company
Investments such as these are typically sold by brokerage firms in exchange for a large up-front commission. High fees can range from 7-10%, as well as additional “due diligence fees” that can range from 1-3%.
The problem with private placement investments is that they typically involve a high degree of risk. They are also often sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.
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. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.
To learn more, please see: Regulation D Private Placement Fraud Attorneys
Recovery of Investment Losses through FINRA Arbitration
If you have concerns regarding your investment in Greenbacker Renewable Energy Company 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.
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.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.
To learn more about our claims involving high-risk private placement investments, please see:
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