Sienna Biopharmaceuticals Files for Chapter 11 Bankruptcy Protection
Are you concerned about your investment in Sienna Biopharmaceuticals? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
Sienna Biopharmaceuticals, a dermatological drug maker based in Southern California, reportedly filed for bankruptcy on September 16, which appears to have sent share prices down more than 73%. Sienna will reportedly use Chapter 11 protection to restructure the company, including a possible sale of assets, and will delay development of its Phase III-ready psoriasis treatment.
The president and chief executive officer of the company, Frederick C. Beddingfield III, reportedly said filing Chapter 11 is in the “best interests” of the company and its stakeholders. According to Beddingfield, the company will be able to maintain its business activities while under Chapter 11. Further, bankruptcy proceedings will give Sienna time to explore a wide range of strategic alternatives and focus its resources on “locating a purchaser or strategic partner to maximize the value of the company.”
According to SEC filings, the company filed a Form D for the offering Sienna Biopharmaceuticals, to raise capital from investors in 2017.
Investments such as these are typically sold by brokerage firms in exchange for a large up front commission. 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 Sienna Biopharmaceuticals is that they typically involve a high degree of risk. They are also often sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.
Investigating Potential Claims
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly recommending high-risk private placements to investors.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.
If you have concerns regarding your investment in Sienna Biopharmaceuticals and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510.
The White Law Group is a national securities fraud, securities arbitration, and investor protection 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://www.whitesecuritieslaw.com.