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Written by 2:35 pm Blog, Current Investigations

Investor Alert: Jumio, Inc.

 Have you suffered losses investing in Jumio, Inc.? If so, the attorneys at The White Law Group may be able to help.

On March 21st, Jumio, an online identification verification company whose clients include United Airlines Inc  and Airbnb, filed for Chapter 11 bankruptcy protection for its U.S. business and initiated the sale of assets, according to court documents.

The company, based in Palo Alto, California, said in the court filing that it has struggled to raise funding for its operations following government investigations into financial irregularities and stock sales by its former management team.

Then on May 6th, Jumio Inc. won court approval to sell its assets to an affiliate of Centana Growth Partners. A Delaware bankruptcy judge approved the deal following an auction in which the New York-based private-equity firm, Centana, won the right to buy Jumio’s business. Jumio chose Centana’s $850,000 offer over a much larger offer from Facebook co-founder Eduardo Saverin, which the company’s shareholders strongly opposed.

Jumio is a Reg D private placement. Reg D private placements involve a high degree of risk and are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds. The White Law Group is investigating the liability that brokerage firms may have for improperly selling private placements like Jumio, Inc.

However, another problem with Reg D private placements is that the high sales commissions and due diligence fees the brokers earn for selling such products sometimes can provide brokers with an enormous incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of investments or to outright misrepresent the basic features of the products – usually focusing on the income potential and tax benefits while downplaying the risks.

Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes and if a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim.

To determine whether you may be able to recover investment losses incurred as a result of your purchase of Jumio, please contact The White Law Group at 1-888-637-5510 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 Franklin, Tennessee. The firm represents investors throughout the country in claims against their brokerage firm.

For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.




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