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Written by 7:52 pm Blog, Current Investigations

FS Investment Corporation III – FSIC III – Illiquid Investment

FS Investment Corporation III

FS Investment Corporation III Investors may have claims.

If your financial advisor unsuitably recommended investing in FS Investment Corporation III, and you incurred losses, you may be able to recover your losses by filing a FINRA Arbitration claim.

FS Investment Corporation III (FSIC III) is an alternative investment offered by FS Investments. According to the FS Investment Corporation III prospectus, this is a complex investment and involves a number of significant risks. There is even a possibility that investors “could lose all or part of their investment.

 

  • Our shares are not listed on an exchange or quoted through a quotation system, and will not be for the foreseeable future, if ever. Therefore, if stockholders purchase shares in this offering, it is unlikely that they will be able to sell them and, if they are able to do so, it is unlikely that they will receive a full return of their invested capital.
  • We are not obligated to complete a liquidity event by a specified date; therefore, it will be difficult for an investor to sell his or her shares.
  • Investors will not know the purchase price per share at the time they submit their subscription agreements and could receive fewer shares of common stock than anticipated if our board of directors determines to increase the offering price to comply with the requirement that we avoid selling shares at an offering price below our net asset value per share.”

Lack of Liquidity – Secondary Sales Price -$7.37/Share

Investors looking to sell alternative investments, like FS Investment Corporation III, often have difficulty finding a buyer, and can suffer significant losses on the sale.

Central Trade & Transfer, a secondary market for alternative investments, recently sold shares of FS Investment Corporation III for just $7.37 per share. This may be at a loss to investors, as the original offering price was $10.00 per share.

Your financial advisor has a responsibility to perform due diligence on any investment before recommending it to you. If your advisor unsuitably recommended FS Investment Corporation III and you lost money, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claims against the brokerage firm that sold you the investment.

The Financial Industry Regulatory Authority (FINRA) provides an arbitration forum for investors to resolve disputes with their brokerage firm. If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim.

For a free, no obligation consultation with a securities attorney, please contact the offices of The White Law Group at 1-888-637-5510.

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.

Visit the firm’s homepage to learn more about the firm’s representation of investors.

 

 

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