Did your broker recommend an investment in ZocDoc Inc.?
The White Law Group is investigating potential securities claims involving broker dealers and financial advisors who may have unsuitably recommended ZocDoc Inc. to investors.
ZocDoc Inc., a technology company based in New York NY, reportedly provides an online healthcare marketplace that allows people to find and book in-person or telemedicine appointments for medical or dental care. The platform also functions as a physician and dentist rating and comparison database, according to its website.
The company reportedly filed a form D to raise capital from investors in 2015. The total offering amount sold was purportedly $80,000,000, according to SEC filings.
Private Placement investments such as this one are generally speculative, high risk investments and due to these risks are often unsuitable for many investors. Despite the risks of investing in alternative investments, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.
Since they are generally not traded on any exchange, private placement offerings are typically illiquid investments. There are often legal or contractual restrictions on your ability to transfer your holdings, and even if sale of your holdings is permitted there may be no buyers. You may need to hold these securities for an indefinite period of time.
While some private placement investments may make periodic distributions, others may not make any.
Brokerage firms have a responsibility to adequately disclose all risks before selling any investment and must consider suitability factors such as age, financial needs, and risk tolerance to name a few. Firms that do not perform adequate due diligences on an investment or demonstrate a breach of fiduciary duty can be held accountable for losses incurred through FINRA arbitration.
Potential Lawsuits to Recover Financial Losses
If you are concerned about an investment in ZocDoc Inc., the securities attorneys at The White Law Group may be able to help you. 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.
For more information on the firm, please visit https://www.whitesecuritieslaw.com.