Securities Fraud and Mismanagement

Attorney and Counselor at Law

303-300-5022 / 844-253-5858 Toll Free

Did the actions/inactions of my broker fall below the required standard of care?

We’ll tell you, for FREE.

If you have suffered loss in an SPAC investment, which would include Virgin Galactic, Nikola, DraftKings, Pershing Square Tontine, Lordstown Motors and others, please contact us Initial consultations are free and confidential.  Our firm specializes in the recovery of investor losses by the pursuit of securities and advisory firms selling investments that are not suitable or sufficiently vetted.

Insiders made billions from these investments while smaller investors were left with losses.  Investments such as these were not suitable for most investors.  

An SPAC is a publicly listed company whose only purpose is to merge with other, non-public companies to allow those companies to “go public” or sell stock shares on a national exchange.  This short-cut to going public allows a company to sell on national exchanges cheaper and more quickly but investors pay for such time and cost savings.  The regulatory steps that are skipped by bringing a company public with an SPAC include steps that protect the investing public.

SPACs have been a popular investment but interest has been slowing as the shortcomings of SPACs have been exposed to the investing public.  The lack of regulation has led to large accounting scandals and other harmful facts not coming to light until after the SPAC companies have become public.

One of the largest busts is Virgin Galactic.  Virgin lost $1.5 billion.  This speculative investment was one where the finances and disclosures lacked the transparency of activities led to great losses.  

DraftKings recently tumbled after short sellers alleged that the company had black market ties.  Once again, this is something that would have been identified had the company been brought public in the traditional manner.

Securities professionals have a duty to ascertain a certain level of facts concerning a company before the company can be recommended to any of their investors.  These professionals also cannot recommend an investment that is higher risk than their investor can tolerate.  When fundamentals such as these cannot be vetted, not only is the investment too high of a risk for most investors, but it cannot be sold to any investor.



Wall Street loved selling SPAC investments to small investors.
SPAC investments were once the darling of Wall Street.