Industry Experts Scrutinizes Aegis Underwriting Practices
The securities attorneys at Meyer Wilson are investigating claims that Aegis Capital, a broker-dealer, routinely serves as underwriter for questionable stock offerings that have cost investors billions. According to SLCG Economic Consulting LLC, Aegis Capital is one of the worst retail brokerage firms based on complaints, and investors should avoid it at all costs. Meyer Wilson has represented numerous investors in claims against the firm over the years in our decades of securities fraud experience.
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Aegis Capital’s Role
SLCG alleges that since 2010, Aegis has been the sole underwriter of 186 offerings for 111 issuers totaling $1.9 billion. The firm is accused of underwriting stocks issued by small companies on the verge of delisting or bankruptcy, peddling worthless stock to its customers and those of other brokerage firms. SLCG further claims that Aegis provides inflated research analyst coverage and aggressive buy recommendations with unrealistic price targets for many of the stocks it underwrites.
SLCG’s findings are backed by the following statistics:
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The weighted average 12-month return of an Aegis underwriting is -49.5%.
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Investors lost $938,714,091 of the $1,896,433,478 invested in the first twelve months after an Aegis underwritten offering.
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The weighted average return to February 28, 2024 across Aegis underwritings is -75.4%.
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Investors lost $1,429,287,802 of the $1,896,433,478 invested in the Aegis underwritten offerings by February 28, 2024.
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174 (93.5%) of the 186 Aegis issues have negative returns. Only 12 (6.5%) of the 186 Aegis issues have positive returns.
As an underwriter, Aegis has a duty to conduct reasonable due diligence into the issuers’ operations, business models, financial statements, forecasts, and representations. SLCG’s findings raise questions about the conflicts of interest the firm has in underwriting these offerings and then selling them to its clients. Additionally, as a publisher of research analyst reports, Aegis is required to ensure its analysts are free of conflicts and present unbiased recommendations and 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 provided positive research coverage for.
Aegis Capital Problematic Offerings on Meyer Wilson’s Watchlist
How Meyer Wilson Can Help Investors
If you have suffered investment losses due to Aegis Capital’s underwriting practices, Meyer Wilson’s investment attorneys may be able to assist you in recovering your losses. Many of these claims can be brought in securities arbitration before FINRA. Contact Meyer Wilson at 866-938-2021 or visit investorclaims.com for a free consultation.
Written By: Courtney Werning, Esq.
Recovering Losses Caused by Investment Misconduct.
