Investigating Claims involving ShiftPixy Inc.
Are you concerned about your investment in ShiftPixy Inc.? The White Law Group is investigating potential securities claims involving broker-dealers who may have improperly recommended ShiftPixy Inc. to investors.
ShiftPixy Inc reportedly delivers a platform for workforce management that helps businesses with shift-based employees, according to Yahoo Finance.
The company reportedly filed a Reg D in 2019 to raise capital from investors. The total offering amount sold to investors was purportedly $3,750,000.
According to a litigation release, the SEC penalized ShiftPixy Inc. in 2019 in connection with financial statements filed with the Commission. ShiftPixy reportedly paid a fine of $25,000.
ShiftPixy Inc. – Reg D Private Placement – Suitable for you?
Regulation D (Reg D) private placements such as the one offered by ShiftPixy Inc. are a type of securities offering that allows companies to raise capital from investors without having to go through the rigorous and expensive process of registering with the Securities and Exchange Commission (SEC).
While they can offer potentially high returns, private placement investments are associated with high risks.
Alternative investments, such as ShiftPixy Inc. are not publicly traded, so there is limited liquidity for investors. This means that it can be difficult to sell your investment if you need to access your funds quickly.
Private companies are not required to disclose the same level of information as publicly traded companies, so investors may not have access to all the information they need to make informed decisions.
They are also generally considered to be high-risk investments because they are often offered by startup companies or companies with a limited operating history such as ShiftPixy Inc. These companies may have a higher risk of failure or may be more susceptible to market fluctuations. They also typically associated with high sales fees and commissions– sometimes as much as 10% -15% of the total offering amount.
Reg D private placements are exempt from many of the regulations that govern publicly traded securities, so investors may have limited legal recourse if something goes wrong. Because private placements are not subject to the same level of regulatory oversight as publicly traded securities, there is a greater risk of fraud or misrepresentation.
While Reg D private placements can offer potentially high returns, they are also associated with significant risks. It is important to carefully evaluate the risks and benefits of any investment opportunity before making any investment decisions.
Broker Due Diligence
Broker due diligence refers to the process that a broker-dealer undergoes to evaluate and investigate potential securities offerings, investment opportunities, or other financial products that they may recommend to clients. This process typically involves a thorough review of the investment’s financial statements, disclosures, legal documentation, and other relevant information to ensure that the investment aligns with the client’s financial goals, risk tolerance, and overall investment strategy.
If you believe that your broker failed to do due diligence on your investment, and you suffered losses as a result, you may be able to file a FINRA arbitration claim. FINRA is the Financial Industry Regulatory Authority, which is a self-regulatory organization that oversees the securities industry in the United States.
Filing a FINRA Claim
The securities attorneys at the White Law Group can help you file a FINRA claim by providing legal guidance and representation throughout the process.
If you have a viable claim, the securities attorneys at the White Law Group can help you prepare and file the FINRA claim. This includes drafting a statement of claim that outlines the allegations against your broker and the damages you are seeking.
After the claim is filed, your securities attorney can represent you in negotiations with your broker and their attorneys. They can work to reach a settlement that provides you with the compensation you deserve for your losses. If a settlement cannot be reached, your securities attorney can represent you in FINRA arbitration or court litigation. They can prepare and present evidence on your behalf, cross-examine witnesses, and make legal arguments to support your case.
If you are concerned about your investment in ShiftPixy Inc., the securities attorneys at the White Law Group may be able to help you. To speak with a securities attorney, please call the offices of the White Law Group at (888)637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases. The firm has offices in Seattle, Washington and Chicago, Illinois and reviews securities cases across the country.
Tags: FINRA arbitration, Securities Attorney, ShiftPixie investigation, ShiftPixy lawsuit, ShiftyPixy SEC Last modified: April 4, 2023