Securities Lawyers Blog
The securities lawyers of Gana Weinstein LLP are investigating claims made by SLCG Economic Consulting LLC that Aegis Capital, a broker-dealer, routinely serves as underwriter for dubious stock offerings that cost investors billions. SLCG starts off by calling Aegis one of the worst retail brokerage firms based on complaints and a firm that investors should avoid it at all costs. Our firm has represented a large number of investors in claims against the firm over the years.
SLCG claims that since 2010, Aegis has been the sole underwriter of 186 offerings for 111 issuers totaling $1.9 billion. The article further claims that Aegis underwrites stocks issued by small companies on the verge of delisting or bankruptcy and that Aegis’s underwriting peddles worthless stock to its customers and to the customers of other brokerage firms. SLCG further claims that Aegis provides inflated research analyst coverage for many of the stocks it underwrote and aggressive buy recommendations with unrealistic price targets.
SLCG also provided statistics to back up its findings stating:
- The weighted average 12 month return of an Aegis underwriting is -49.5%.
- Investors lost $938,714,091 of the $1,896,433,478 invested in the first twelve months after an Aegis underwritten offering.
- The weighted average return to February 28, 2024 across Aegis underwritings is -75.4%.
- Investors lost $1,429,287,802 of the $1,896,433,478 invested in the Aegis underwritten offerings by February 28, 2024.
- 174 (93.5%) of the 186 Aegis issues have negative returns. Only 12 (6.5%) of the 186 Aegis issues have positive returns.
As underwriter of the offerings, Aegis has a duty to its clients to conduct reasonable due diligence into the issuers’ operations, business model, financial statements, forecasts, and representations. SLCG’s findings call into question the conflicts of interests the firm has in underwriting these offerings and then selling them to its clients. In addition, as publisher of research analyst reports, Aegis is required to ensure that its analysts are free of conflicts of interest and present unbiased recommendations as well as price targets. SLCG’s findings call into question how analyst reports could be unbiased given the widespread and continuous failure of the stocks Aegis underwrote and on which it also provides positive research coverage for.
A list of the securities affected by the article is published below. The investment lawyers at Gana Weinstein LLP represent investors who have suffered investment losses due to allegations of wrongdoing. The majority of these claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.
Aldeyra Therapeutics
Alkaline Water
Alset EHome
American CareSource
American DG Energy
Applied UV
Ascent Solar
AspenBio Pharma
Assure Holdings
ATOSSA GENETICS
Avenue Therapeutics
Avinger
BiondVax Pharmaceuticals
Blue Star Foods
Bruush Oral Care
BYND CANNASOFT
C3is
CEL SCI
Cellectar Biosciences
CEMTREX
China SXT Pharmaceuticals
ChromaDex
Clearmind Medicine
CN ENERGY
Cocrystal Pharma
CollabRx
Comstock Mining
Cyngn
DarioHealth
DATARAM
DIGITAL ALLY
Document Security Systems
Echo Therapeutics
ECMOHO
EZGO Technologies
Farmmi
Genetic Technologies
GigaCloud Technology
GLOBEIMMUNE
GlucoTrack
Greenland Technologies
Greenwich LifeSciences
Hanryu Holdings
iBio
INPIXON
Inspira Technologies OXY
Intellicheck Mobilisa
Interactive Strength
Invivo Therapeutics
IZEA
Jeffs’ Brands
Jupiter Wellness
Kaspien Holdings
MANHATTAN BRIDGE
Marathon Patent Group
Maris Tech
Medalist Diversified REIT
Medigus
MediWound
Meten EdtechX Ed
Micronet Enertec
Moko Social Media
Molecular Data
My Size
NephroGenex
Netsol Technologies
Neuralstem
Nisun Intl Ent Dev Group
Northwest Biotherapeutics
Nuvve Holding
NuZee
Nxt-ID
Ocean Power Tech
OLB GROUP
Opexa Therapeutics
ORAMED PHARMA
ParaZero Technologies
Precipio
PURE BIOSCIENCE
Rail Vision
RedHill Biopharma
Rennova Health
RIT Technologies
RITTER PHARMA
Rosetta Genomics
Sachem Capital
SciSparc
SEACHANGE
Semler Scientific
Sharps Technology
SIGMA LABS
SIGNAL GENETICS
SINGING MACHINE
SMTP
SOLIGENIX
Sunshine Biopharma
Super League Gaming
Superconductor Technologies
Tantech Holdings
Therapix Biosciences
Tonix Pharmaceuticals
Top Ships
Torchlight Energy
TuanChe
Verb Technology
Volcon
Vuzix Corp
Wearable Devices
xG TECHNOLOGY
XPLORE Technologies