Did you lose money investing in Fortress Biotech?
Galvin Legal, PLLC is launching an investigation on behalf of investors who suffered losses investing in Fortress Biotech at the recommendation of their financial advisor. If you suffered losses investing in the investment, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim against the brokerage firm that recommended the investment.
According to public records, the FINRA suspended and fined a JMP Securities analyst $20,000 for an alleged conflict of interest.
The analyst, who was reportedly registered with JMP Securities in New York, was writing research reports on a company with which he was allegedly engaged in employment discussions.
According to the Letter of Acceptance, Wavier & Consent (“AWC”), in February 2018, the analyst purportedly held advanced employment discussions with the chairman of one of the 38 companies he followed in the biotechnology sector. In March 2018, the analyst reportedly received an offer letter from the company and he accepted the offer shortly thereafter.
During the same time period, he allegedly co-authored five research reports on the company without disclosing in any of the reports the material conflict of interest arising from his employment discussions. One of the reports reiterated his market outperform rating, according to the AWC.
Within two weeks after he received the employment offer, his firm allegedly published three more reports reportedly co-authored by the analyst about the company, according to FINRA.
According to reports, the individual has held the title of “Entrepreneur in Residence” at Fortress Biotech since May 2018.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Due Diligence Requirement
FINRA requires brokerage firms to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokerage firms that fail to conduct adequate due diligence on investments they recommend, such as Fortress Biotech, or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing in Fortress Biotech and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.
