Pump and Dumps

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Pump and dumps are hard to sue on because the obvious sender, the company, could claim that an investor got the shares and is pumping them with fraudulent promotional materials, not the company.

Here are some telltale signs that the company is liable:

  • You call the company and ask to be taken off the list for the faxes and the promise to remove you.
  • You call the company and ask whether they've reported the pump and dump to the authorities. If they can't tell you who they reported it to, they probably didn't.
  • You tell the company you want to sue the perpetrators and ask them if they know who did it. If they say no, you ask them to look at their trading records to determine that. If they are unwilling to do that, that's a sign they are in cahoots since they're going to be required to pull this data.
  • If they won't cooperate willingly with you, then there is probably a reason. Your only alternative left is to sue them. The subpoena them to turn over their records of who they paid stock to as well as the trading records for the stock. If the stock is held in street name, subpoena the firm and find out which account is trading the stock.

For more info, contact

Gregg Breitbart
General Counsel
Newbridge Securities Corporation
(954) 334-3450

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