Investigating Potential Lawsuits – Kensington Leasing Ltd.
Have you suffered losses investing in Kensington Leasing Ltd.? 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.
According to Bloomberg, as of May 20, 2011, Kensington Leasing, Ltd. was acquired by Wikifamilies SA, in a reverse merger transaction. Prior to acquisition, the company intended to focus on the production, marketing, and distribution of a retail line of prepaid stored value cards for the purchase of technology support and security services for electronic devices. The company was incorporated in 2008 and is based in Redlands, California.
Risks of 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.
Microcap stocks are high risk investments. 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.
Additionally, it may be difficult to find 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. That is not the case with microcap stocks.
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.
Recovery of Investment Losses
The White Law Group is investigating potential securities fraud claims involving broker dealers who may have unsuitably recommended high risk microcap stocks like Kensington Leasing Ltd. 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.
We represent investors in FINRA arbitration claims in all 50 states. Our attorneys have recovered millions of dollars from many brokerage firms in the past.
If you have suffered investment losses in Kensington Leasing Ltd. or another microcap stock, you may be able to recover your losses. 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.