NS8 Inc.  Shareholders may have Claims

The White Law Group is investigating potential FINRA lawsuits involving broker dealers who may have unsuitably recommended NS8 Inc. to investors.

NS8 Inc., based in Las Vegas, Nevada, reportedly provides a fraud prevention platform combining behavioral analytics, real-time scoring, and global monitoring to minimize risk. The company reportedly filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case 20-12702) on October 27, 2020.   The company estimates $10 to $50 million in assets and $100 to 500 million in liabilities.

According to filings with the SEC, the company filed a form D to raise capital from investors in 2017 and the total offering amount was purportedly $7,500,000.

Risks of Alternative Investments

Alternative investments are complex and inherently risky products. Unfortunately for investors, many investments have taken a hit due to the Covid-19 global pandemic, and some have suspended distributions during this  uncertain time.

Compared to traditional investments, such as stocks, bonds and mutual funds, alternative investments are significantly more complex and often better suited for sophisticated and institutional investors.

High commissions could be a motivating factor for unscrupulous financial advisors to sell private placement investments regardless of whether the investment is in line with the client’s investment objectives and profile.  Moreover, the total commissions and expenses make it difficult for the investment to perform in line with the market.

They also tend to be illiquid. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.

Filing a Complaint Against your Brokerage Firm

Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.

Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration.

Free Consultation with a Securities Attorney

If you are concerned about your investment in NS8 Inc., you may be able to file a complaint against your brokerage firm. Please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For more information on The White Law Group, visit http://whitesecuritieslaw.com.