Investigating Potential Lawsuits – Lustros Inc.
Have you suffered losses investing in Lustros Inc.? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
Lustros Inc., a development stage company, markets and sells copper sulfate obtained by processing copper ore raw materials purchased from third parties in Chile, according to Bloomberg. The company is headquartered in Santee, California.
What are Microcap Stocks (Penny Stocks)?
According to the SEC, the term “microcap stock” (also known as “penny stock”) applies to companies with low or micro market capitalizations. Companies with a market capitalization of less than $250 or $300 million are often called “microcap stocks” – although many have market capitalizations of far less than those amounts.
While all investments involve risk, microcap stocks are among the riskiest. Many microcap companies are new and have no proven track record. Some of these companies have no assets, operations, or revenues. Others have products and services that are still in development or have yet to be tested in the market. Another risk that pertains to microcap stocks involves the low volumes of trades, which may make it difficult for you to sell your shares when you want to do so.
Another problem with investing in microcap stock is the amount of reliable publicly-available information about the company. Most large public companies file reports with the SEC that any investor can get for free from the SEC’s website.
Further, non-listed corporations don’t have to meet any minimum listing standards, but are typically subject to some initial and ongoing requirements unlike companies that list their stocks on exchanges and must meet minimum listing standards.
Free consultation with a Securities Attorney
The White Law Group is investigating potential securities fraud claims involving broker dealers who may have unsuitably recommended high risk microcap stocks like Lustros Inc. to investors.
Broker dealers are required to perform adequate due diligence on all investment recommendations. They must ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
A broker or brokerage firm can be held liable if they make an unsuitable investment recommendation or fail to adequately disclose the risks. The Financial Industry Regulatory Authority (FINRA) provides an arbitration forum for investors to resolve such disputes.
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.
If you have suffered losses investing in Lustros Inc. or another microcap stock please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.
For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.