What Investors Need to Know About Dataram Corporation
Dataram Corporation develops and manufactures high-capacity memory products. If you are an investor who suffered losses in Dataram Corporation and suspect securities fraud involving those investments, please seek help immediately. Reach out to the experienced securities fraud attorneys at Meyer Wilson today for a complimentary consultation. Our committed legal team is ready to assist you in understanding your rights and evaluating your potential recovery options.
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What is Dataram Corporation
History and Development
Dataram Corporation is a trusted leader in advanced memory solutions. With a rich history spanning over 40 years, the company has adeptly navigated the ever-changing technological landscape. Consequently, Dataram’s products are utilized across a wide range of industries, including financial services, life sciences, oil and gas, government, and defense sectors.
The company’s dedication to innovation is reflected in its recent investments in research and development. Dataram is on the verge of launching a new data storage acceleration product line, showcasing its commitment to remaining at the forefront of memory technology. This strategic move is expected to further enhance Dataram’s standing in the competitive memory solutions market.
Business Model and Operations for Dataram Corp.
Dataram Corporation’s business model focuses primarily on developing, manufacturing, and marketing large-capacity memory products. High-performance network servers and workstations predominantly use these products. At present, the company generates an estimated annual revenue of $7.5 million. It employs a workforce of approximately 55 people.
One of Dataram’s strengths lies in its commitment to providing customized memory solutions for OEMs. This approach enables the company to effectively address specific client needs, thereby maintaining a competitive advantage. Dataram has broadened its product offerings by developing RAMDisk software, a leading solution in the Windows market that enhances its presence in the technology sector. According to Dataram’s investor fact sheet, the company distributes its products globally, with international shipments experiencing a remarkable growth of 40%.
Investment Insights and Risks
Understanding FINRA Rule 2111
FINRA Rule 2111 is essential for safeguarding investors. Essentially, it ensures that investment recommendations align with the individual needs and risk profiles of customers. This rule mandates that firms and their representatives establish a strong rationale for their recommendations, meaning they must sincerely believe that a proposed transaction serves the best interests of the customer.
FINRA Rule 2111 includes three main obligations:
- Reasonable basis suitability: Ensuring the recommendation suits at least some investors, taking into account their financial situation, investment objectives, and risk tolerance to avoid unsuitable advice.
- Customer-specific suitability: Tailoring recommendations to individual investor profiles, which includes understanding their unique circumstances, investment goals, and preferences to provide personalized advice.
- Quantitative suitability: Preventing excessive trading that could harm the investor, ensuring that trading activity aligns with the investor’s overall strategy and does not lead to unnecessary risks or losses.
At Meyer Wilson, our investment fraud attorneys are dedicated to helping you understand the implications of FINRA Rule 2111 violations. These violations can result in substantial financial losses for investors like you. Common issues include unsuitable investment recommendations and excessive trading practices. If you find yourself affected by such violations, know that you have the right to pursue legal action against brokers or financial advisors who have not acted in your best interest.
Risk Factors for Investors
Investing in Dataram Corporation, like any investment, carries inherent risks that deserve careful consideration. One significant concern is the company’s reliance on key customers, which can create vulnerabilities. For instance, in 2010, a single customer accounted for 11% of the company’s revenue. This concentration risk could have a substantial impact on Dataram’s financial stability, especially if major clients decide to reduce their business or explore alternative suppliers.
The rapidly evolving technological landscape presents another risk factor. Personal computers are becoming increasingly powerful and capable of performing tasks that were once exclusive to workstations. This shift could potentially narrow the market for Dataram’s specialized memory products, thereby affecting the company’s long-term growth prospects. Investors should thoughtfully weigh these factors when evaluating Dataram Corporation’s stock.
Recent developments have prompted investigations into Dataram Corporation’s stock offerings. The experienced securities fraud attorneys at Meyer Wilson have raised concerns regarding Aegis Capital, which underwrote a $3.3 million offering for Dataram. This firm is now under scrutiny for potentially unsuitable investment recommendations that may have led to significant losses for investors.
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Next Steps for Investors
As you explore opportunities with Dataram Corporation and potentially invest, it’s important to stay informed about the company’s developments and market trends. With its commitment to innovation and tailored solutions, Dataram presents intriguing possibilities for growth for investors aware of the risks involved. However, be mindful of those risks, such as customer reliance and market shifts. Engage in comprehensive research and align your investment strategy with your financial objectives and risk appetite with your broker or advisor. If you have concerns about potential misconduct in your investments, reach out to our experienced securities fraud attorneys for a complimentary consultation today. They can provide guidance to safeguard your financial interests and assist in recovering any losses.
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Frequently Asked Questions
How does FINRA Rule 2111 protect investors?
FINRA Rule 2111 requires broker-dealers to provide suitable investment recommendations based on a customer’s profile, ensuring alignment with their financial situation and risk tolerance.
What are the recent developments at Dataram Corporation?
Dataram Corporation has transformed into US Gold Corp and is under investigation for unsuitable investment recommendations made by Aegis Capital, leading to investor losses.
How can investors assess Dataram Corporation’s stock?
Investors should evaluate Dataram’s stock by analyzing its financial performance, market position, and regulatory compliance, while considering personal financial goals and risk tolerance.
What steps should be taken if a broker violates FINRA Rule 2111?
If a broker violates FINRA Rule 2111, investors should file a complaint with FINRA and seek legal representation for arbitration to recover losses.
What is Aegis Capital Corp’s role in Dataram’s stock offering?
Aegis Capital Corp was the sole underwriter for Dataram’s stock offering, facing allegations of profiting from risky stocks, which resulted in investor losses.
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