Concerned about your investment in Geomedia Digital Merger Corp.?
The White Law Group is investigating potential securities claims involving broker dealers and financial advisors who may have unsuitably recommended Geomedia Digital Merger Corp. to investors.
Geomedia Digital Merger Corp., based in Cornona Del Mar, CA, reportedly filed a form D to raise capital from investors in 2015. The total offering amount was purportedly $5,000,000. The sales commissions and fees were estimated at 10% of the total offering amount.
Private placement investments such as this one, are generally speculative, high risk investments and due to these risks are often unsuitable for most investors. Despite?the risks of investing in alternative investments, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.
Since they are not traded on any exchange, private placement offerings are typically illiquid investments. There are often legal or contractual restrictions on your ability to transfer your holdings, and even if sale of your holdings is permitted there may be no buyers. You may need to hold these securities for an indefinite period of time.
Often companies that issue unlisted securities may provide little or no transparency into their ongoing operations and financial condition.
While some private placement investments may make periodic distributions, others may not make any.
Brokerage firms have a responsibility to adequately disclose all risks before selling any investment and must consider suitability factors such as age, financial needs, and risk tolerance to name a few. Firms that do not perform adequate due diligences on an investment or demonstrate a breach of fiduciary duty can be held accountable for losses incurred through FINRA arbitration.
Filing a Complaint against your Brokerage firm.
If you are concerned about an investment in Geomedia Digital Merger Corp., the securities attorneys at The White Law Group may be able to help you by filing a complaint against your brokerage firm. Please call the offices at 888-637-5510 for a free consultation with a securities attorney.
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.
For more information on the firm, please visit https://www.whitesecuritieslaw.com.
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