Investor Alert: Recro Pharma, Inc. 

Investor Alert: Recro Pharma, Inc. 

Concerned about your investment in the Recro Pharma Inc.?

The White Law Group is investigating potential securities claims involving broker dealers who may have unsuitably recommended high risk alternative investments such as the Recro Pharma to investors. 

According to SEC filings, the company filed a Form D to raise capital from investors in 2015. The type of securities is purportedly equity and according to the Reg D, the total offering amount was purportedly $16,000,008.

Is an Alternative Investment Suitable for you?

Alternative investments are not suitable for all investors, especially those who need liquidity in their investment.  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.

However, many brokerage firms overlook suitability regulations set forth by the SEC to earn the high commissions that these types of investments often come with.  Sales commissions can range from 6% to 10%,  and often come with a 2%- 3.0% dealer manager fee. In this particular investment, the sales commissions paid were estimated at 6.0%, according to the form D.

Brokerage 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.

If you are concerned about an investment in Recro Pharma, Inc., 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 and Franklin, Tennessee.

For more information on the firm, please visit https://whitesecuritieslaw.com.