American CareSource Holdings: Lawsuits for Investment Losses

American CareSource Holdings Securities Investigation  

The White Law Group is currently investigating potential claims involving Aegis Capital Corp. and other broker-dealers for improperly recommending investments in American CareSource Holdings Inc. to investors. 

Aegis Capital Corp. reportedly underwrote the offering American CareSource Holdings, with a $7,500,000 offering on December 3, 2015, which has experienced a post-offering return of -100% as of February 28, 2024.  

According to a recent analysis by the financial economics consulting firm SLCG, many offerings underwritten by Aegis Capital were issued by nano-cap companies on the brink of delisting and bankruptcy. Over 95% of Aegis Capital’s underwritings have underperformed the average microcap stock. 

Background on American CareSource Holdings 

The company provides urgent and primary care services branded as Go Now Doctors. 

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.  

• Potential for Fraud: There’s a risk of fraudulent activities associated with some underwriters and issuers of small stock offerings.  

 Broker Responsibilities and Investor Protections  

Broker dealers are required to conduct thorough due diligence on any investment they recommend and ensure that all recommendations are suitable for their clients. Firms that fail in this duty may be held liable for investor losses through FINRA arbitration claims.  

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.  

Recovery of Investment Losses  

If you have suffered losses investing in the American CareSource Holdings, you may have the option to file a complaint against your brokerage firm. 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. 

 FAQ’s – American CareSource Holdings

1. Can I sue my broker for losses in American CareSource Holdings?
Yes. If your broker recommended American CareSource Holdings without properly disclosing the risks, or if the investment was unsuitable for your financial situation, you may be able to file a FINRA arbitration claim to recover your losses. Brokers are required to perform due diligence and make recommendations that fit each investor’s profile.

2. What are the risks of investing in small-cap or OTC stocks like American CareSource Holdings?
Investments in small or over-the-counter (OTC) stocks, like American CareSource Holdings, carry high risks due to limited financial transparency, low liquidity, and extreme price volatility. These stocks are often linked to companies with unstable financials, and in this case, the stock lost 100% of its value after a $7.5 million offering underwritten by Aegis Capital Corp.

3. How do I file a complaint or claim involving American CareSource Holdings?
You can file a complaint through FINRA’s arbitration process or consult a securities attorney. The White Law Group is currently reviewing such claims and offers free consultations to help determine if you are eligible to recover investment losses related to American CareSource Holdings.