National investment loss lawyers KlaymanToskes is investigating brokerage firms and financial advisors that sold or managed positions in Capstone Green Energy Corporation (NASDAQ: CGRN). following the company’s announcement that it has filed for chapter 11 bankruptcy protection and plans to reorganize into public and private units.
Investors who suffered losses as a result of being recommended to invest in Capstone Green Energy, and/or who had their position managed by a broker/financial advisor are encouraged to contact attorney Lawrence L. Klayman at (888) 997-9956 or lawrence@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.
Disclosure: Investors who did not rely on the advice of a broker/financial advisor are not eligible for our services.
Capstone Green Energy Corporation, formerly known as Capstone Turbine Corporation, is a California-based gas turbine manufacturer. Capstone’s common stock (NASDAQ: CGRN), following its name and ticker change, began trading on the Nasdaq Capital Market on April 22, 2021. Capstone Green Energy is currently trading at $0.50.
According to Capstone’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. Capstone also stated that it has entered into a transaction support agreement (TSA) with Goldman Sachs Specialty Lending Group, L.P. and Broad Street Credit Holdings LLC.
To implement Capstone’s prepackaged restructuring, the company intends for its distributor support services to become a private company, while Capstone Turbine International, Inc. will be publicly traded and renamed Capstone Green Energy Corp. Capstone has secured a commitment from its Consenting Lender for $12 million in new debtor-in-possession financing, in addition to the $3 million it previously received.
The company previously received written notice from the listing qualifications department of The Nasdaq Stock Market on March 28, 2023, stating that Capstone’s market value of listed securities (MVLS) for the last 30 consecutive business was below the required minimum of $35 million for continued listing on the Nasdaq, under Listing Rule 5550(b)(2).
On September 26, 2023, Capstone received written notice from Nasdaq that it has not regained compliance, and that unless the company requests an appeal of this determination, the company’s securities will be delisted from The Nasdaq Capital Market at the opening of business on October 5, 2023.
The Financial Industry Regulatory Authority (“FINRA”) 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, “Energy equipment and services investments such as Capstone Green Energy 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 FINRA arbitration claim may be the best solution for investors to recover their 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 Capstone Green Energy Corp. 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 lawrence@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.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lawrence@klaymantoskes.com
www.klaymantoskes.com