Pagoda Pharma Group – Investigating Potential Claims
The White Law Group is investigating potential claims involving broker-dealers who may have unsuitably recommended Pagoda Pharma Group to investors.
Pagoda Pharma Group formerly known as Medracron, Inc., manufactures, sells, and distributes diagnostic devices to treat and diagnose urological conditions. It primarily focuses on therapeutics for the treatment of benign prostatic hyperplasia (BPH) and overactive bladder (OAB), as well as to treat and diagnose related conditions, according to Bloomberg. The company also offers pharmaceuticals as its name suggests.
Pagoda Pharma Group filed a Form D in 2009 to raise capital. According to the filing, the company expected to pay broker sales commissions of up to 10% of sales.
Pagoda Pharma Group is a private placement investment. Generally speaking, private placements are not subject to some of the laws and regulations that are designed to protect investors, such as the comprehensive disclosure requirements that apply to registered offerings.
Private and public companies engage in private placements to raise funds from investors. These Reg D private placements are then typically sold by brokerage firms in exchange for a large up front commission, usually between 7-10%, as well as additional “due diligence fees” that can range from 1-3%.
Are Private Placement investments suitable for you?
Private Placement investments such as Pagoda Pharma Group are not suitable for all investors. They should only be sold to high net worth, knowledgeable investors.
Your broker has a duty to conduct due diligence of the investment and make sure the investment is suitable for you. Your broker must consider your age, financial situation, current and future needs, investment objectives and tax status.
If your broker recommended Pagoda Pharma Group unsuitably, this could be a violation of the antifraud provisions as well as other federal securities laws.
Have you suffered losses investing in Pagoda Pharma Group at the recommendation of your financial advisor? If so, you may be able to recover your losses.
Investors can file an arbitration claim or request mediation through The Financial Industry Regulatory Authority (FINRA) when they have a dispute involving the business activities of a brokerage firm or one if its brokers.
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. The firm represents investors throughout the country in claims against their brokerage firm.
For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.