Did you lose money after investing in a fund offered by GPB Capital Holdings, which was offered by over 60 independent broker-dealers? Sonn Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 866–827–3202, or complete our contact form for a free consultation.
New York-based alternative asset management firm GPB Capital Holdings came under scrutiny earlier this year when it reported massive losses in its two largest portfolios, causing investors to lose millions of dollars.
In addition, both the Financial Industry Regulatory Authority (FINRA) and the SEC started investigations into possible misconduct on the part of the firm.
Many investor fraud and consumer protection law firms, including Sonn Law, started their own investigations into brokers that may have sold funds offered by GPB Capital.
On August 2nd, 2019, a class-action lawsuit was filed against GPB Capital in federal district court in New York, broadly alleging that investors were damaged by GPB Capital because the firm’s funds failed to provide audited financial statements as required by the SEC.
Unfortunately, the claims in the class action are fairly limited in scope, making it a less attractive option than individual recovery. While it does allege breach of contract and breach of fiduciary duty, the complaint does not make any allegations of fraud or misrepresentation.
Your Broker and GPB Capital Funds
As a result, individual FINRA arbitration based on each investors’ situation is likely a better option for recovery caused by losses suffered from investment in GPB Capital funds. Sonn Law urges any investors who purchased GPB Capital funds to carefully assess their situation to determine how much their brokers were paid in commission for selling GPB Capital funds, and where necessary the due diligence file created pertaining to GPB Capital.
Many state securities laws also provide remedies for misconduct. Because investors still own the securities that prompted them to file an action, state laws may allow investors to sell their securities back to the seller. This can be especially helpful if the purchased securities were illiquid, as was the case with many of the funds offered by GPB Capital.
Further, under FINRA Rules, member firms are responsible for supervising their brokers and may be liable for misconduct. Investors may be able to recover all or part of an investment through FINRA arbitration under these rules.
Speak to a Securities Lawyer Today
If brokerage firms sold unsuitable, risky private placements to investors, they could potentially be held liable for any resulting financial losses. At Sonn Law Group, we have extensive experience representing investors in securities lawsuits and FINRA arbitration cases. If you sustained large investment losses, you may be eligible to recover monetary damages. For a free consultation, please contact our law office today.
Disclaimer: This article contains opinions and NOT statements of fact in any way whatsoever. The information here is general information that should not be taken as legal advice. NO attorney-client relationship is established between you and our attorneys by reading this article. This article is attorney advertising and should not be used as a substitute for legal advice from a qualified securities lawyer.