Concerned about your investment in Orexigen Therapeutics Inc.?
According to Bloomberg, Orexigen Therapeutics, Inc., a biopharmaceutical company, focuses on the development of pharmaceutical products primarily in the United States, Europe, and South Korea. It offers Contrave for the treatment of obesity. The company also offers Contrave under the Mysimba brand name. Orexigen Therapeutics, Inc. was founded in 2002 and is headquartered in La Jolla, California.
Orexigen Therapeutics Inc. filed a Form D in 2016 to raise capital from investors. A Regulation D Private Placement investment is 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 Orexigen Therapeutics Inc. is that they often involve a high degree of risk. They are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.
High Risk Private Placement Investments
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly selling high-risk private placements, like Orexigen Therapeutics Inc., to investors.
Despite the risks of investing in private placements, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.
If a brokerage firm makes unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment they may be liable for investment losses through FINRA arbitration.
FINRA operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.
If you have concerns regarding your investment in Orexigen Therapeutics Inc., the securities attorneys at The White Law Group may be able to help you. To speak with a securities attorney about your options, please call 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 Franklin, Tennessee.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.