Notice to WiSA Technologies Investors and Maxim Group Customers Who Suffered Losses: Contact KlaymanToskes Immediately
- None.
- WiSA's stock declined by 99% in the past year, indicating significant financial loss for investors.
- WiSA is a high-risk, illiquid investment with a negative ROIC of -1,461.43% since inception, highlighting poor financial performance.
- The company needs to raise additional funds through equity or debt as its revenues are insufficient to cover operating costs, indicating financial instability.
Insights
The dramatic decline in WiSA Technologies' stock by 99% reflects a significant financial distress that may have broader implications for investors and the regulatory landscape. The role of brokerage firms and advisors in recommending high-risk investments like WiSA is pivotal in this context. A legal expert would scrutinize the suitability of the investment recommendations provided to clients, which is a fundamental principle in financial regulation. Firms and advisors have a duty to ensure that the investment products they recommend are aligned with their clients' risk profiles, investment objectives and financial situations.
Furthermore, the investigation by KlaymanToskes into the actions of brokerage firms may lead to arbitration claims or litigation, which could result in compensation for affected investors. However, the legal process can be lengthy and outcomes uncertain. The negative ROIC since inception is alarming and suggests a deeper evaluation of the company's business model and financial management practices is necessary.
The mention of WiSA's ROIC being -1,461.43% is a critical indicator of the company's inability to generate a positive return on the capital invested in its operations. This metric is essential for investors to assess the efficiency and profitability of a company's capital investments. A financial analyst would highlight that such a negative ROIC could be indicative of fundamental issues within the company's business model or operational execution.
The need for additional funding as disclosed in WiSA's SEC filings suggests the company is not self-sustaining and raises concerns about its future viability. The continuous sale of equity or incurring of debt to fund operations could lead to further dilution of shareholder value or increase financial leverage, potentially exacerbating the risk profile of the investment.
The steep decline in WiSA's share price over the past year and the subsequent investigation into the suitability of broker recommendations could have a chilling effect on investor confidence, not just in WiSA, but potentially in similar high-risk, illiquid private placement offerings. A market research analyst would examine the broader market implications, such as the potential impact on the reputation of private placements as a category and the possible tightening of regulatory scrutiny over the sale of such securities.
Understanding the market dynamics and investor sentiment towards high-risk investments could inform stakeholders about the potential shifts in investment trends and risk appetites. The analyst would also consider the competitive landscape and whether WiSA's challenges are unique or indicative of systemic issues within its industry sector.
KlaymanToskes Has Recovery Options for WiSA Investors
NEW YORK, NY / ACCESSWIRE / February 29, 2024 / National investment fraud lawyers KlaymanToskes is investigating brokerage firms and brokers/investment advisors who unsuitably recommended WiSA Technologies (NASDAQ:WISA) to their customers. WiSA's stock declined by
WiSA is a high-risk, illiquid, private placement investment, which has faced continued instability of its share price since the company first went public in 2018. In the past year, WiSA's share price has plummeted by over
WiSA disclosed in its latest Form 10-Q filing with the Securities and Exchange Commission ("SEC") that it will need to raise additional funds through either the sale of additional equity, or incurring debt, as its revenues are unable to cover its cost of operations. The company stated that there is "substantial doubt about the Company's ability to continue as a going concern."
Maxim Group, LLC served as the sole placement agent for WiSA in connection with its Private Placement offering. The compensation to Maxim Group for sales of the shares, as an agent of the company, is a cash transaction fee equal to three percent (
Brokerage firms and their registered financial professionals have a duty to recommend suitable investments to their customers. KlaymanToskes believes financial advisors and their firms may have misrepresented the lack of liquidity and risk-factors related to investments in WiSA, leading to unsuitable recommendations.
Further, brokerage firms have a duty to ensure that their customers are not over concentrated in any one investment product or market sector, and maintain a responsibility to provide customers with diversification and risk-management strategies to protect concentrated and/or margined positions. They can also be held liable if their due diligence was inadequate, and/or if they failed to question the company's risk and financing needs.
If you suffered investment losses as a result of a recommendation to purchase WiSA Technologies by your broker/financial advisor, contact attorney Lawrence L. Klayman at (888) 997-9956 or lawrence@klaymantoskes.com for a free and confidential consultation to discuss recovery options. We do not collect attorney's fees unless we are able to obtain a financial recovery for you.
About KlaymanToskes
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over
Contact
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lawrence@klaymantoskes.com
www.klaymantoskes.com
SOURCE: KlaymanToskes, P.A.
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FAQ
What recovery options does KlaymanToskes offer for WiSA investors?
How much has WiSA's stock declined in the past year?
What is WiSA's return on invested capital (ROIC) since inception?
Why does WiSA need to raise additional funds?
