Recovering Investment Losses involving Uni-Pixel

Did you lose money investing in Uni-Pixel at the advice of your broker? If so, the securities attorneys at The White Law Group may be able to help you recover your losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

Uni-Pixel and Uni-Pixel Displays filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Northern District of California, lead case number 17-52100.

According to a press release on Friday, “[The Company] is obligated to advance expenses for the defense of its two former executive officers, Reed Killion and Jeffrey Tomz, in their defense on an action brought against them by the Securities and Exchange Commission….The company and Messrs. Killion and Tomz have been in discussions regarding timing of payment of advancement of expenses, but have been unable to reach a resolution and Messrs.

“Killion and Tomz have moved to seek recourse in the Delaware Chancery Court, including seeking to have the company liquidate assets to provide funds for the advancement of expenses. In light of this, the company intends to use the bankruptcy process to seek to sell the assets of the company including manufacturing equipment, R&D equipment, intellectual property assets, individually or to an interested buyer in totality and subject to the approval of the Bankruptcy Court.”

The company develops and markets high performance metal mesh capacitive touch sensors for the touchscreen and flexible displays markets. Uni-Pixel filed a Form D in The Woodlands, NY in 2010 to raise capital.

The Trouble with Reg D Private Placements

The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly selling alternative investment products like Uni-Pixel to their clients.

Private Placements are often riskier and more complicated than traditional investments, and are only suitable for high net worth, sophisticated investors. These types of investments are a means for smaller companies to raise capital through the sale of equity or debt securities without having to register their securities with the SEC.

Broker dealers are required to perform adequate due diligence on any investment they recommend. They must ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.

Despite the risks of investing in this type of alternative investments, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.

If you are concerned about your investment in Uni-Pixel or another private placement investment and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://whitesecuritieslaw.com.