Did your Financial Advisor Recommend Investing in PhaseRX Inc.?

The White Law Group is investigating the liability broker-dealers may have for unsuitability recommending PhaseRX Inc. to investors.

PhaseRx is a biopharmaceutical company dedicated to developing mRNA products for the treatment of children with inherited enzyme deficiencies in the liver using intracellular enzyme replacement therapy (i-ERT). PhaseRx is headquartered in Seattle, Washington.

PhaseRx announced at its third-quarter financial report on Nov. 9 that it planned to restructure in order to cut short-term operating costs. It also was delaying the development of its other lead product candidate, PRX-OTC. It was also laying off 10 employees, including some executive officers.

Risks of Private Placement Investments

PhaseRX Inc. raised money by offering Regulation D private placement investments. Private placements are unregistered securities and can be very risky. They are not regulated with the same scrutiny as stocks, bonds or mutual funds.

Private Placements, such as PhaseRX Inc., are not suitable for all investors.  A private placement investment has inherent risks, including tying up investment monies for long periods of time. There is also the risk of loss to some or all of the investment. Brokers have a duty to investigate private placements and determine the suitability for their clients.

According to the Financial Industry Regulatory (FINRA) Rules, member firms are responsible for supervising a broker’s activities while the broker is registered with the firm. Thus, if you suffered losses investing in PhaseRX Inc., the brokerage firm may be held liable for those investment losses.

Investors can file an arbitration claim or request mediation through FINRA when they have a dispute involving the business activities of a brokerage firm or one if its brokers.

The White Law Group represents investors across the United States for complaints against brokers for improper sales practices. For a free consultation with a securities attorney, please call 888-637-5510.

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

For more information on The White Law Group, visit www.whitesecuritieslaw.com.