Full question:
I purchased restricted stock from a publicly traded company in the amount of $130,000. After the transaction was completed I was informed that there were income and net worth requirements by the SEC that were not disclosed to me by the seller. These requirements would have prevented me from qualifying in this type of investment (example: Liquid net worth of 1 million dollars required). Does the company (seller) have liability to return my original investment?
- Category: Contracts
- Date:
- State: National
Answer:
A court may order the contract to be rescinded, meaning it can cancel the agreement and require the seller to return your investment. The decision will depend on the specific facts and circumstances of your case.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.