Shepherd Smith Edwards and Kantas Capital Loss Recovery Attorneys Continue to Investigate Aegis Capital Over Investment Losses
Investor May Have Allegedly Lost At Least $5B From Stock Offerings Underwritten By Broker-Dealer
If you suffered losses in stocks of small companies underwritten and/or sold by broker-dealer Aegis Capital Corp., please contact Shepherd Smith Edwards and Kantas (investorlawyers.com) today. We are continuing to look into allegations that the firm cost investors billions of dollars when underwriting and/or selling stocks from small companies that were either on the brink of bankruptcy or were about to be delisted. Our Aegis Capital loss recovery attorneys are also investigating other brokerage firms that may have sold what could now be “worthless” stocks to customers.
In early 2024, SLCG Economic Consulting wrote an article accusing Aegis of “systematically underwriting spectacularly failing nano-cap stocks” while alleging that this could have cost its own retail customers up to $5B in losses in recent years. Aegis continued to underwrite more purportedly questionable offerings. The same article reported that since 2010, the firm was the lone underwriter of at least 186 offerings worth at least $1.9B for 111 issuers—and this doesn’t even take into account the offerings that were written after this time.
Not only that, but these underwritten offerings were purportedly re-traded in the accounts of its retail brokerage clients at significant markdowns and markups. Aegis may have also served as market maker for many of the stocks it underwrote. Brokers who would make trades would then be able to generate its bid-ask spread revenue, which could have been a strong motivation for recommending these stocks to customers regardless of suitability.
SLCG contends that research analyst coverage for the many of the stocks, also provided by Aegis, were “inflated, ” and even though almost all the stock prices of the underwritten companies had gone down to $0, the broker-dealer allegedly offered “relentless aggressive buy recommendations” at price targets that were “stratospheric.”
There is growing concern that Aegis-underwritten nano stock investors may have lost 98% of what they initially invested.
Did Your Aegis Broker Sell You One Of The Firm’s Underwritten Nano Stocks?
You may have grounds for pursuing a claim against Aegis if unsuitable investment recommendations, broker fraud, or negligence was involved. If these stocks’ companies were, in fact, on the verge of failing, yet your Aegis Capital financial advisor marketed and sold these investments to you—a retail investor—you may have grounds for an investment loss recovery claim.
Did Another Brokerage Firm Sell You These Aegis-Underwritten Nano Stock?
If your financial advisor from another broker-dealer or investment adviser sold you these small company stocks, yet they failed to conduct the necessary due diligence to determine the viability of this investment, neglected to ensure that this was a good recommendation given your portfolio, financial goals, age or risk tolerance level, misrepresented the risks, or breached their fiduciary duty to you in other ways, you may be able to pursue damages from the firm. However, determining whether you are entitled to financial recovery can be difficult, which is why you should schedule your free case consultation with one of our Aegis Capital loss recovery attorneys today.
Contact Us Today:
At Shepherd Smith Edwards and Kantas, we have the skills, experience, and knowledge to make a proper assessment of whether broker fraud or negligence contributed to your investment losses. If we decide to work together, you can trust on receiving solid securities representation and personalized attention.
Our broker misconduct law firm has represented thousands of investors in more than 1000 matters in arbitration, mediation, and litigation. We have successfully brought complex cases against the largest Wall Street firms.
Through our seasoned efforts, more than 90% of our clients have received full or partial financial recovery from the liable broker-dealers and investment advisers.
Call (800) 259-9010 or fill out this form.