SPAC Investigation: Investigating Potential Claims involving View Inc.
The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended SPACs including an investment in View Inc.
Special purpose acquisition companies (SPACs) were designed as a shortcut to a stock-market listing and a way for retail investors to gain access to promising start-up companies. Unfortunately, these often turn into bad investments because of poor due diligence and financial controls. According to one report, an index of 25 companies that became public by combining with a SPAC has declined more than 75% from its peak in February last year.
The SEC is apparently ramping up protection for investors after the sad performance of businesses that have gone public by merging with special purpose acquisition companies (SPAC).
Some analysts claim that View Inc is a perfect example of why SPAC reform is needed. In March 2021, View Inc, a smart window manufacturer, reportedly made a disastrous $1.6 Billion deal with a SPAC backed by Cantor Fitzgerald. The shares are currently down 93% and the company says it is doubtful it has enough cash to continue as a going concern for another 12 months.
According to one analyst at Bloomberg, the “smart” window company has close to $2 billion of losses since it launched, and it has negative gross margins, and hasn’t filed earnings reports since May 2021.
To learn more about SPACs please see: Securities Investigation – Special Interest Acquisition Company (SPAC)
Recovery of Investment Losses through FINRA Arbitration
The Financial Industry Regulatory Authority (FINRA) last October launched a thorough examination of the activities of brokerage firms in relation to special purpose acquisition companies (SPACs) because of the risks of these investments and the potential for financial losses for retail investors.
Fortunately, the Financial Industry Regulatory Authority (FINRA) provides for an arbitration forum for investors to resolve disputes if a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment. It is possible that they could be found liable for investment losses in a FINRA arbitration claim.
Filing a Complaint against your Brokerage firm
If you are concerned about an investment in View Inc or another special purpose acquisitions company (SPAC), the securities attorneys at The White Law Group may be able to help you by filing a complaint against your brokerage firm. Please call the offices at 888-637-5510 for a free consultation with a securities attorney.
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.
For more information on the firm, please visit https://www.whitesecuritieslaw.com.