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Aegis Capital Accused of Harming Investors Out of at Least $5 Billion

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

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