Concerned about your investment in Tout Inc.?
The White Law Group is investigating potential securities claims involving broker dealers and financial advisors who may have unsuitably recommended Tout Inc. to investors.
Tout Inc. was an online social networking service and microblogging service that enables its users to send and view 15-second videos, known as “touts,” according to Wikipedia.The company, based in San Francisco, CA, reportedly filed a form D to raise capital from investors in 2016. The total offering amount sold was purportedly $26,621,218.
Private placement investments such as this one, are generally speculative, high risk investments and due to these risks are often unsuitable for most investors. Despite?the risks of investing in alternative investments, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.
Since they are not traded on any exchange, private placement offerings are typically illiquid investments. There are often legal or contractual restrictions on your ability to transfer your holdings, and even if sale of your holdings is permitted there may be no buyers. You may need to hold these securities for an indefinite period of time.
Often companies that issue unlisted securities may provide little or no transparency into their ongoing operations and financial condition.
While some private placement investments may make periodic distributions, others may not make any.
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. 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.
Filing a Complaint against your Brokerage firm
If you are concerned about an investment in Tout Inc., the securities attorneys at 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.
For more information on the firm, please visit https://www.whitesecuritieslaw.com.
Tags: Tout Inc. class action lawsuit, Tout Inc. investment losses, Tout Inc. shares, Tout Inc. complaints, Tout Inc. investigation, Tout Inc. investments, Tout Inc. lawsuit, Tout Inc. recovery options, Tout Inc. review Last modified: January 15, 2021