Valeritas Holdings, Inc. (VLRXQ) Files for Chapter 11 Bankruptcy
Are you concerned about your investment losses in Valeritas Holdings, Inc. (VLRXQ)? 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.
Valeritas Holdings, Inc. reportedly operated as a commercial-stage medical technology company, according to Bloomberg. The company filed a form D to raise capital from investors in 2016, according to filings with the SEC. The total offering amount sold was purportedly $25,195,000.
According to filings with the SEC, on February 9, 2020, the Company filed a voluntary petition for bankruptcy protection under Chapter 11 of Title 11 of the United States Code. The filing was made in the United States Bankruptcy Court for the District of Delaware. The Asset Sale was reportedly approved by the Bankruptcy Court on March 20, 2020.
On April 1, 2020, Valeritas Holdings, Inc. and certain of its subsidiaries agreed to sell substantially all of its assets to Zealand Pharma for total consideration of (i) $23 million in cash and (ii) the assumption of certain liabilities of the Debtors.
Filing a Complaint against your Brokerage Firm
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly recommending high-risk investments to investors.
The problem with pharmaceutical and biotech investments such as Valeritas Holdings, Inc. is that they typically involve a high degree of risk. The research and development process for pharma companies often involves costly and lengthy testing trials that yield specific data. If the expected data or end points are not met, that could be bad news for investors.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.
If you have concerns regarding investment losses in Valeritas Holdings, Inc., please call the securities attorneys at The White Law Group for a free consultation at 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.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.