TrovaGene – Securities Investigation
Are you concerned about your investment in TrovaGene? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
Trovagene is a clinical stage precision medicine biotechnology company developing oncology therapeutics for hematologic and solid tumor cancers, according to its website.
According to Yahoo Finance, TrovaGene announced the pricing of the underwritten public offering of 18 million shares of its common stock on June 7. Following the announcement, the stock price decreased ~48% to the closing price of $0.92 on June 8.
According to SEC filings, TrovaGene filed a Form D to raise capital from investors in 2017 in San Diego, CA. The total offering amount was $ 6,547,512.
Investments such as these are typically sold by brokerage firms in exchange for a large up front commission. High fees can range from 7-10%, as well as additional “due diligence fees” that can range from 1-3%.
According to the form D, the fees for this TrovaGene offering were “6.00% of the gross proceeds from the sale of securities in the private placement of warrants and concurrent registered direct offering, and $50,000 is for the reimbursement of expenses incurred by the placement agents.”
The problem with private placement investments such as TrovaGene is that they typically involve a high degree of risk. They are also often sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.
Investigating Potential Claims
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly recommending high-risk private placements, like TrovaGene to investors.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.
If you have concerns regarding your investment in TrovaGene and would like to speak with a securities attorney about your options, please call 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 with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://whitesecuritieslaw.com.
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