Smiley Bishop & Porter LLP is investigating Securities America’s Medical Capital, Inc. promissory notes and Provident Royalties preferred stock. Clients have brought claims against the firm alleging that it failed to adequately investigate these products, that the investments were unsuitable, and that the firm did not disclose the products’ risks, which were substantial.
The Securities and Exchange Commission (SEC) sued Provident Royalties in 2009, contending that it sold preferred stock through a series of fraudulent private placement offerings. According to the action, Provident Royalties promised investors high returns and misrepresented how investor funds would be used.
In an effort to reduce its liability exposure, Securities America asked United States District Judge Royal Furgeson to preliminarily approve a class action settlement which would return only pennies on the dollar to investors. As part of this request, Securities America also requested that all individual FINRA arbitration cases be halted and made a part of the class action settlement. In a win for investors, Judge Furgeson declined to approve the class action settlement and ruled that individual FINRA arbitrations could proceed forward.
If you believe you have suffered losses because of these products, please contact Smiley Bishop & Porter LLP to discuss your rights at 770-829-3850 or toll-free (800) 697-4514. Smiley Bishop & Porter LLP represents individual and institutional investors in securities arbitration and litigation. The firm focuses on cases involving defrauded investors, suitability claims, and mismarketeted investment products. Smiley Bishop & Porter LLP is available for a free initial consultation to determine the best course of action. Visit us at www.sbpllplaw.com to obtain additional information.