If you believe you have suffered investment losses in Spring Hills Holdings, LLC, you may be able to pursue recovery of your losses through securities arbitration or litigation. Please call Kons Law at (860) 920-5181 for a FREE, NO OBLIGATION consultation to discuss your investment loss recovery options.
According to SEC filings, since 2017 Spring Hills Holdings, LLC has raised capital through a series of Regulation D private placement offerings. In connection with the review of one of those offerings, an Investment News article reported that a former compliance executive for one of the broker-dealers selling Spring Hills Holdings filed a whistleblower lawsuit against the brokerage firm she worked for alleging she was fired days after she called securities regulators over concerns about the firm's sale of alternative investments. The article stated that the lawsuit further alleges that one of the investments that she expressed concerns about, but was approved for sale anyways was Spring Hills Holdings.
Brokerage Firms Have a Duty to Conduct Proper Due Diligence on Private Placement Investments like Spring Hills Holdings
Securities brokerage firms have a regulatory duty to ensure that any investments they recommend to customers are suitable for them. This is especially important for brokerage firms selling private placement investments in companies like Spring Hills Holdings, LLC. In addition to ensuring that securities are suitable for its customers on an individual level, FINRA Rule 2111 (NASD Rule 2310) also states that a securities brokerage firm must have reasonable grounds to believe that a recommendation to purchase, sell or exchange a security is suitable for at least some customers. This “reasonable-basis” suitability requirement means that in the context of private placement investments like Spring Hills Holdings, brokerage firms must conduct thorough due diligence prior to approving and selling these products to their customers.
Brokerage firms “may not rely blindly upon the fund manager for information concerning the investment” nor may it rely on the information provided by the issuer in lieu of conducting its own reasonable investigation. Brokerage firms can be held liable for investment losses that stem from a failure to conduct adequate due diligence.
Call to Learn More about Your Rights
If you believe you have suffered investment losses in Spring Hills Holdings, you may be able to pursue recovery of your losses through securities arbitration or securities litigation. Please call Kons Law at (860) 920-5181 for a FREE, NO OBLIGATION consultation to discuss your investment loss recovery options.
Kons Law represents investors nationwide in securities arbitration and litigation matters. To learn more about the Firm’s securities litigation and FINRA arbitration practice, please visit www.investmentfraudattorneys.com.
