PRIVATE PLACEMENTS/LIMITED PARTNERSHIPS
A private placement is a securities offering that is exempt from registration with the SEC. Securities in a private placement include stocks, bonds, and membership interests in limited partnerships or limited liability companies (LLCs).
A limited partnership (LP) is a business that’s owned by general partners and limited partners.The general partners make business decisions and take on full liability for the company, the limited partners invest their money; they do not make any business decisions or take on any liability for the company.
Private placements and limited partnerships have limited regulatory oversight, making investors more vulnerable to fraud. Kohn Swift represents investors in private placements and limited partnerships in instances of fraud or unsuitable advice from advisors.
PRIVATE PLACEMENTS/LIMITED PARTNERSHIP LITIGATION
SEC Regulation D sets out the requirements for the private placement exemption under Rule 506(b) of the Securities and Exchange Act of 1933. While other state and federal laws apply, raising capital through a Regulation D private placement can be quicker and more streamlined than a public offering as it exempts issuers from the registration requirements of the Securities Act.
If you believe a corporation in which you are invested is sustaining damage due to breaches of fiduciary duty, or if you wish to inquire about a shareholder derivative action, please contact our securities lawyers for assistance.
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