Concerned about your investment in Outcome Health Investors LLC?
The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended Outcome Health Investors LLC to investors.
Outcome Health is a healthcare technology company that operates a digital advertising network in doctor’s offices. It is registered in Delaware as ContextMedia Health LLC. The company filed a form D to raise money from investors last July.
In November, a group of investors led by Goldman Sachs, filed suit against the company alleging that the company’s founders misled them before they made a nearly $500 million investment. Goldman asked a judge to put a freeze on $225 million that was due to the owners as part of the fundraising. Goldman is accusing Outcome Health of lying about its financial performance and also charging companies for ads on screens it didn’t have.
Risks of Regulation D Private Placement Investments
Investments such as Outcome Health Investors LLC, are typically sold by brokerage firms in exchange for a large up front commissions. High fees can range from 7-10%, as well as additional “due diligence fees” that can range from 1-3%.
The problem with private placement investments such as Outcome Health Investors LLC is that they involve a high degree of risk. They are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds. These investments may seem wise at first, until the dramatic drop in distributions.
Despite the risks of investing in private placements, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.
If a brokerage firm makes unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment they may be liable for investment losses through FINRA arbitration.
The Financial Industry Regulatory Authority (FINRA) operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.
Are you concerned about your investment in Outcome Health Investors LLC? If so, the securities attorneys at The White Law Group may be able to help you. Please call 888-637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit http://www.whitesecuritieslaw.com.