Nautilus Inc.: Recovery of Investment Losses
Have you suffered losses investing in Nautilus Inc. 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.
What is Nautilus Inc.?
Nautilus, Inc. was a company that developed, manufactured, and sold fitness equipment for home use. The company’s brands included Nautilus, Bowflex, Schwinn, Octane Fitness, and Universal.
In 2023, Nautilus, Inc. changed its name to BowFlex, Inc. The company reportedly filed for bankruptcy protection on March 5th, 2024 with a plan to sell its assets for $37.5 million in cash. The company entered a purchase agreement with Johnson Health Tech, a Taiwanese company that owns several health brands.
Nautilus Inc. – Bowflex Inc. (NYSE:BFX) Delisted
After being delisted from the New York Stock Exchange (NYSE) on March 5, the Vancouver-based fitness equipment maker has moved its stock trading from (NYSE: BFX)to the over-the-counter (OTC) market under the ticker BFXXQ.
The NYSE delisted BowFlex after the company announced it would file for bankruptcy. The company was already facing potential delisting, as its share price had fallen below $1 for over 30 days, a violation of NYSE listing standards. Unlike major exchanges, the OTC market has no such listing requirements.
Risks Associated with 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 Nautilus Inc.(Bowflex Inc.) 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.
Last modified: November 4, 2024
