Student Global LLC: Investigating Potential Securities Claims
The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended Student Global LLC to investors.
Student Global LLC reportedly filed a form D to raise capital from investors in 2023. The investment was purportedly an education technology company.
REG D Private Placements: High Risk Investments
Regulation D, and SEC regulation, allows small to midsize companies an opportunity to raise capital from investors with less expense and reporting requirements than traditional means, making it quite popular.
Often these private placement investments are touted for their income potential and for being “non-correlated” to the stock market. Too often the financial advisor or broker ignores and/or fails to disclose the risks involved in these investments.
Private placement investments such as Student Global LLC, 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.
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, some may not make any at all. Another problem is the high fees and commissions that brokers and financial advisors may receive for the sale of a private placement investment– sometimes close to 10% of the client’s total investment.
Broker Due Diligence
Under the “Regulation best interest” standard, broker-dealers are obligated to perform due diligence when evaluating any investment. If your financial advisor fails to perform due diligence on an investment before recommending it to you, they could be held liable for investment losses.
If your advisor unsuitably recommended a private placement investment and you lost money, the securities attorneys at The White Law Group may be able to help you. You may be able to recover losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
Recovery Options
If you are concerned about your investment in Student Global LLC, you may have recovery options. If you want to learn more about your legal options, please contact the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.
Last modified: November 27, 2024
