GPB Capital Subject of Class Action
GPB Capital is under more pressure with the recent filing of a class action in Texas. The class action alleges that investments operated like a Ponzi scheme, engaged in self-dealing, and failed to adequately disclose material conflicts of interest. GPB Capital raised over $1.8 billion from investors through investments sold by dozens of brokerage firms.
While the class action may be appropriate for some investors, many investors may end up with a better recovery by filing an individual case.
Brokerage firms have an obligation to sell suitable investments to their clients. If the brokerage firm fails to do so, they can be liable for investor losses. Brokerage firms also have obligations to perform due diligence on investments before they are sold to investors, so that the firms can disclose the risks and characteristics of the investment to their customers. If a brokerage firm fails to perform adequate due diligence, and investors suffer damages as a result, the brokerage firm can be liable for losses.
Israels & Neuman is an investment fraud law firm with offices in Denver, Colorado; Seattle, Washington; and Ann Arbor, Michigan. Our attorneys have represented over 1,000 investors throughout the country, including in FINRA arbitration.
If your financial advisor recommended that you invest in any of these GPB Capital investments, please CONTACT US for a free consultation.