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:
It is possible for a court to order that the contract be rescinded and the consideration paid be returned. It will be a matter of interpretation for the court, based upon all the facts and circumstances involved.
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.
