Moko Social Media Ltd: Recovery of Investment Losses
Have you suffered losses investing in Moko Social Media Ltd at the recommendation of your financial advisor? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA lawsuit against your brokerage firm.
(Note: Investors should check the most recent share price, as it may have changed since this report.)
What is Moko Social Media Ltd?
MOKO Social Media reportedly specialized in innovative social media products, with exclusive agreements providing its apps to U.S. colleges and high schools.
In October 2015, Moko Social Media Ltd. offered shares of its common stock for sale to investors. The offering was reportedly underwritten by Aegis Capital Corp. As of February 28, 2024, the average post offering return was –80.7%. The company’s common stock was traded on the NASDAQ, under the symbol “MOKO.”
MOKO Delisted
On June 7, 2016, MOKO Social Media Limited announced that NASDAQ had decided to delist the company from The NASDAQ Stock Market due to its failure to meet the minimum $50 million market value requirement. Despite being given 180 days to regain compliance, MOKO did not meet the threshold.
Trading of its American Depositary Shares (ADSs) was suspended in June 2016, and NASDAQ removed MOKO’s securities from its listing. Its primary listing on the Australian Securities Exchange (ASX) was also delisted as February 2019, when it was placed into voluntary administration. The company’s shares were subsequently suspended from trading, and it was eventually deregistered.
MOKO Social Media Ltd.: Risky Small Stock Offerings
There are numerous risks involved in investing in small stock offerings. These stocks may have low trading volumes, making it difficult to buy or sell shares at desired prices and many small companies may not provide comprehensive financial disclosures or have limited operating histories.
Small stocks can also be more volatile than larger, established companies, leading to significant price fluctuations.
Broker Due Diligence
Broker due diligence is a process undertaken by brokerage firms to ensure they are recommending and selling investment products appropriate for their clients. This process protects the interests of the brokerage firm and its clients by ensuring that the investments offered are suitable for the client’s investment objectives, risk tolerance, and financial situation.
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.
Class Action vs. Individual FINRA Arbitration Lawsuit
You may wonder whether a large class action lawsuit is a better litigation option than an individual FINRA arbitration case. The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option. Class actions as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.
Free Consultation
If you have suffered investment losses in Moko Social Media Ltd, you may have recovery options. Please call the securities attorneys at The White Law Group for a free consultation 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
1. Why is Moko Social Media Ltd. under investigation?
The White Law Group is investigating whether brokerage firms, including Aegis Capital Corp., unsuitably recommended Moko Social Media Ltd. to investors. The company’s stock, listed as MOKO, was delisted by NASDAQ in 2016 and has since become worthless, with an average post-offering return of –80.7% as of February 28, 2024.
2. What made investing in Moko Social Media Ltd. risky?
Moko was a small-cap company with limited financial transparency, low trading volume, and a volatile business model. The stock was suspended from trading and eventually delisted from both NASDAQ and the Australian Securities Exchange. These factors made it a highly speculative and illiquid investment.
3. Can I recover losses from investing in Moko Social Media Ltd.?
Yes. If your broker failed to conduct proper due diligence or recommended MOKO without explaining the risks, you may be able to file a FINRA arbitration claim. The White Law Group offers free consultations to help determine if you have grounds to seek recovery of your investment losses.
