What is Private Placement
Private placement involve the sale of securities that are exempt from registration with the Securities and Exchange Commission (“SEC”). Private placements largely rely upon exemptions provided by Regulation D of the 1933 Act. Issuers of private placements must provide investors with a private placement memorandum (“PPM”), which is supposed to describe the risks and pertinent features of the investment. Investment professionals at brokerage firms and banks often market private placements to their clients. Most private placements generate significant commissions for investment professionals. Prior to selling a private placement to its clients, banks, brokerage firms and investment professionals must conduct due diligence beyond what is contained in the PPM.
Private Placements and Venture Capital
Private Placement Risks
Banks, brokerage firms, and investment professionals often fail to conduct adequate research regarding the risks and features of the private placements. Investment professionals often make disclosures that contradict the risks set forth in the private placement memorandum (PPM). Contradictory representations will nullify these boilerplate disclosures.
Legal Help for Victims of Securities Fraud
If your investment professional sold you a private placement investment and misrepresented the risks of the investment and you have suffered significant losses, you may have a claim for damages. Gilman Law LLP is a leading securities fraud law firm and is here to help you recover damages for private placement. For a FREE evaluation of your case, please fill out our online form, or if you need to speak to an attorney right away CALL TOLL FREE (1-888-252-0048) today.