CION Investment Corp. (CION) Securities Fraud Investigation
Did your broker-dealer recommend an investment in CION Investment Corporation (NYSE: CION), a business development company (BDC), that provides senior secured loans to U.S. mid-market companies? If you have suffered losses investing in CION, the securities attorneys at the White Law Group may be able to help you.
CION listed its shares on the New York Stock Exchange on October 5, 2021 under the ticker CION after a 2-to-1 reverse stock split on Sept. 21. On a split-adjusted basis, some investors who purchased CION as a non-traded BDC may be facing close to a 40% loss on the principal on their original investment, not including any reinvested distributions.
Shares of CION were originally offered at a reverse split adjusted price of $20.00 per share in an offering declared effective in 2012. The NAV per share adjusted for the reverse split was $16.34.
According to Market Watch, shares of CION closed at $12.02 per share yesterday.
CION has approved a share repurchase policy authorizing CION to repurchase up to $50 million of its outstanding common stock following the listing of common shares on the NYSE, according to SEC filings. The timing and number of shares to be repurchased will reportedly be determined by CION and its discretion.
The White Law Group has received numerous calls from investors regarding financial losses after their broker recommended investing in CION Investment Corp. If you invested in CION, you may be able to recover your financial losses through FINRA arbitration.
For more information on the firm’s investigation of Business Development Companies such as CION please see:
How Does a Merger Affect Shareholders?
Companies often merge as part of a strategic effort to boost shareholder value, often by creating new business lines and/or gaining greater market share. However, the economic environment at the time of the merger, size of the companies and management of the merger process all play a part in future returns for shareholders.
Shareholders may experience a significant loss of voting power, and while the spike in trading volume tends to inflate share prices, if economic conditions are not favorable at the time of the merger, shareholders may see significant losses.
High Risk Alternative Investments
The White Law Group continues to investigate potential claims involving broker dealers who may have unsuitably recommended high risk Business Development companies (BDCs) such as CION Investment Corporation to unsuspecting investors. The firm has received numerous calls from investors looking to recover financial losses from investments in BDCs like Sierra.
The high commission structure of these products leads to the possibility that unscrupulous financial advisors will push these products unsuitably to maximize their own commissions.
Brokerage firms are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor in light of that particular investor’s age, investment experience, net worth, risk tolerance, investment objectives, and income.
Firms that fail to perform adequate due diligence or that make unsuitable recommendations can be held responsible for investment losses in a FINRA arbitration claim.
Potential Lawsuits to Recover Financial Losses
If you suffered losses investing in a CION Investment Corporation with your financial advisor, please call the securities attorneys of 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 Seattle, Washington. The firm represents investors in FINRA arbitration claims throughout the country. For more information on the firm, visit https://www.whitesecuritieslaw.com.