The Galbraith Law Firm Cautions Investors about the Risks of Private Placements

The Galbraith Law Firm is tracking recent guidance issued by FINRA concerning the loss, disclosure and liquidity risks that are presented by so-called “private placements.” FINRA’s press release is below.

A private placement is an investment offered to high-net-worth individuals and institutions in which the investor purchases unregistered securities issued by a company. These investments, sometimes known as “Reg. D offerings,” are often pitched as attractive opportunities that are unavailable to ordinary investors. Brokers soliciting investments in private placements often neglect to mention that such investments carry with them significant risks of loss and a lack of liquidity, since the securities tend to be thinly traded.

If you have invested in a private placement without appropriate disclosure, or if you believe a private placement was recommended to you that was unsuitable for your investment objectives or risk tolerance, you should contact us at 212.203.1249 or kevin@galbraithlawfirm.com for a free confidential consultation regarding your legal rights.