National investment fraud lawyers KlaymanToskes continues its investigation of brokerage firms and financial advisors that sold or managed positions in Lucira Health, Inc. following the company’s announcement that it has filed for chapter 11 bankruptcy protection and intends to pursue a sale of its business.
Investors who suffered losses as a result of being recommended Lucira Health, Inc. or having their position managed by their broker/financial advisor are encouraged to contact attorney Lawrence L. Klayman at (888) 997-9956 or lklayman@klaymantoskes.com for a free consultation to learn about recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery.
Lucira Health is a medical technology company focused on the development of infectious disease test kits. Lucira’s common stock (NASDAQ: LHDX) began trading on the Nasdaq Global Select Market on February 5th, 2021. The offering’s lead bookrunning managers were BofA Securities and William Blair, with LifeSci Capital acting as co-manager for the offering.
A previous IPO closing press release stated that 10,350,000 shares of Lucira Health’s common stock was offered to the investing public at $17 per share in February 2021. Lucira’s gross proceeds from the offering, “before deducting underwriting discounts and commissions and estimated offering expenses,” were $175.95 million.
According to Lucira’s recent press release, the company has filed for Chapter 11 bankruptcy protection under the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. Lucira Health has also stated its intentions to pursue a sale of the company under Section 363 of the Bankruptcy Code.
The company noted several reasons for its decision and Lucira’s President and CEO Erik Engelson stated “as restrictions lessened in 2022, we saw lower demand for COVID-19 tests” further disclosing that Covid-19 fallout combined with “slower than anticipated regulatory approval for the new combined test kit developed for the 2022-2023 flu season” led to Lucira’s insufficient revenue and capitalization to offset expenditures. According to the press release, Lucira Health expects to continue operations during its bankruptcy proceedings and seeks to expedite its sale process with Bankruptcy Court approval.
FINRA (Financial Industry Regulatory Authority) is responsible for regulating all registered brokers and brokerage firms. In accordance with FINRA Rule 2111 brokers/advisers and their firms have a responsibility to recommend suitable financial products and trading strategies based on their client’s financial interests and needs.
According to securities attorney Lawrence L. Klayman, “Pharmaceutical and biotechnology investments such as Lucira Health are subject to risks that are not easily understood by investors. Financial advisers who failed to discuss the risks with investors and also failed to reasonably conduct due diligence in order to ensure that their investment recommendations were suitable, may be held responsible for any investment losses incurred.”
A Financial Industry Regulatory Authority (“FINRA”) securities arbitration claim may be the best solution to recover investment losses. FINRA arbitration is a more cost-effective process for investors, often occurring with increased speed and efficiency over litigation. FINRA arbitration also allows investors to maintain greater flexibility over their case.
Investors who have experienced significant investment losses in Lucira Health Inc. at the hands of their brokerage firm and/or financial adviser are encouraged to contact attorney Lawrence L. Klayman, Esq. at 1-888-997-9956 or lklayman@klaymantoskes.com for a free and confidential consultation to discuss recovery options and learn more about the arbitration process.
KlaymanToskes offers legal services on a contingency fee basis, meaning we do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
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 $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
Lawrence L. Klayman, Esq.
888-997-9956