Did Aegis Capital Cause Investors To Lose At Least $5B?
Broker-Dealer Accused of Underwriting Questionable Stock Offerings
Shepherd Smith Edwards and Kantas (investorlawyers.com) are continuing to investigate allegations that Aegis Capital may have cost investors billions of dollars in its role as the underwriter of stocks of small companies that were about to be delisted or facing bankruptcy; purportedly, the only reason these companies were able to stay open was because the broker-dealer helped sell these “worthless stocks” to its customers, as well to customers of other brokerage firms.
According to SLCG Economic Consulting, which made the allegations in a March 2024 article, since 2010, Aegis was the lone underwriter of 186 offerings totaling $1.9B for 111 issuers. These underwritten offerings were allegedly re-traded in the broker-dealer’s retail brokerage clients’ accounts at substantial markups and markdowns.
Aegis also purportedly acted as a market maker for a lot of the underwritten stocks, which earned it bid-ask spread revenue when its brokers made trades—a powerful incentive for recommending these transactions to customers.
Aegis also offered research analyst coverage for a lot of the stocks that, according to SLCG Economic Consulting, were “inflated” while, allegedly, “providing relentlessly aggressive buy recommendations with stratospheric price targets” even though nearly all of the stock prices of the underwritten companies had plunged to almost $0.
The March 2024 article claims that in the last decade:
- Aegis has underwritten almost $2B of “worthless” securities and purchased them into inexperienced retail customers’ accounts.
- Investors allegedly have lost 98% of their initial investment.
- They also purportedly lost more than $1.5B in needless markdowns, markups, and bid-ask spread trading.
In a June 2024 article, SLCG said that Aegis was allegedly continuing with these underwriting activities and hurting investors.
What Should You Do If You Sustained Losses in An Aegis-Underwritten Nano Stock?
Your first step is to explore your legal options to assess whether you have grounds for a broker fraud lawsuit. You can do that by contacting us today to request a free initial case assessment. Shepherd Smith Edwards and Kantas Aegis Capital Loss Recovery Attorney teams represent retail investors, high-net-worth investors, accredited investors, and institutional investors against broker-dealers and investment advisers whose negligence, misconduct, or fraud caused their customers to lose money.
What If Another Broker-Dealer Sold You The Aegis-Underwritten Stock?
Brokerage firms are supposed to conduct the necessary due diligence to ensure that any investment they recommend to you is a solid one. When due diligence failures, supervisory failures, unsuitable investment recommendations, concentration, misrepresentations and omissions, breach of fiduciary duty, or negligence contribute to an investor losing money, the broker-dealer could end up owing damages to you.
You want to work with seasoned securities lawyers who have the experience, knowledge, and resources to build a solid broker misconduct claim on your behalf and provide you with the robust securities representation that you need. Suing a broker-dealer and proving liability is no easy task.
Through our hard work and dedication, Shepherd Smith Edwards and Kantas has helped thousands of investors to collectively recover many millions of dollars from brokerage firms and investment advisers. We genuinely care about our clients and are committed to doing what we can to maximize their chances for a full financial recovery.
Contact Our Aegis Capital Loss Recovery Attorney Team Today:
Call (800) 259-9010 or fill out this form.