ReWalk Robotics Ltd.: Lawsuit Investigation
The White Law Group is investigating potential securities claims involving investments in ReWalk Robotics Ltd., an Israel-based biotechnology and medical device company. According to a Form D filed with the SEC, the company initiated a private placement in June 2019, seeking to raise approximately $10.8 million through the sale of equity and warrant.
Background on ReWalk Robotics Ltd.
ReWalk Robotics Ltd., headquartered in Yokneam Illit, Israel, develops and markets wearable robotic exoskeletons for individuals with spinal cord injuries. While the company operates in an innovative sector, investments in private offerings such as this often involve substantial risks and limited liquidity.
Risks of Private Placement Investments
Private placement offerings like ReWalk Robotics Ltd. are typically sold under Regulation D exemptions and are not subject to the same regulatory oversight or reporting requirements as publicly traded securities. Some of the common risks include:
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Illiquidity – No secondary market exists, which may prevent investors from exiting their investment.
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High Commissions – Brokers may receive commissions exceeding 7%, which can create conflicts of interest.
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Speculative Business Models – Emerging biotech and medical device companies often carry high failure risks.
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Lack of Transparency – Limited financial disclosures may leave investors without a full picture of the company’s performance.
Broker-Dealer Duties and Investor Claims
Brokerage firms that sell high-risk private placements such as ReWalk Robotics are required to perform adequate due diligence before recommending them to clients. Additionally, financial advisors must ensure that the investments are suitable given the investor’s risk tolerance, financial objectives, and experience.
If your financial advisor recommended an unsuitable investment in ReWalk Robotics Ltd. without properly explaining the risks, you may have grounds for a claim to recover your losses.
Recovery Options for Investors
Investors who suffered losses in ReWalk Robotics Ltd. may be able to pursue claims through FINRA arbitration against the brokerage firms that sold the offering. FINRA arbitration is a dispute resolution process specifically designed for resolving claims between investors and broker-dealers.
The White Law Group has successfully handled numerous cases involving Regulation D private placements and other high-risk alternative investments.
Free Consultation
If you invested in ReWalk Robotics Ltd. and have concerns about your investment, please call The White Law Group at (888) 637-5510 for a free consultation. Our attorneys can review your situation and discuss potential claims to help recover your losses.
Frequently Asked Questions (FAQs)
What is ReWalk Robotics Ltd.?
ReWalk Robotics Ltd. is an Israeli medical device and biotechnology company focused on developing robotic exoskeletons for individuals with mobility impairments.
Who sold the ReWalk Robotics Ltd. private placement?
According to SEC filings, the placement was managed by H.C. Wainwright & Co., LLC, which marketed the offering to investors in the U.S. and abroad.
Can I recover losses if I invested in this offering?
Possibly. If your financial advisor failed to conduct proper due diligence or recommended the investment without regard to your financial situation and objectives, you may be eligible to file a FINRA arbitration claim.
