Chicken Soup for the Soul Entertainment, Inc. (OTCMKTS:CSSEQ)
NEW YORK, NY, USA, August 13, 2024 /EINPresswire.com/ — National securities law firm KlaymanToskes has launched an investigation into brokerage firms and financial advisors who unsuitably recommended investments in Chicken Soup for the Soul Entertainment, Inc. (OTCMKTS: CSSEQ) following the company’s steep decline in stock value of over 90% in the past year, and its recent Chapter 11 bankruptcy filing. Investors who suffered losses of $100,000 or more as a result of a recommendation by their broker/investment advisor should contact the firm immediately at 888-997-9956. Investors with self-directed accounts who did not rely on the advice of a financial advisor are not eligible for our representation.
KlaymanToskes reports CSSE’s stock price, which peaked at nearly $50 per share in 2021, has plummeted over 90% in the past year, reaching as low as $0.11 shortly before trading halted around July 1, 2024. The company’s substantial net losses of approximately $636 million in 2023, along with nearly $53 million in the first quarter of 2024, indicated severe financial distress. Additionally, CSSE’s securities were delisted from the Nasdaq Capital Market after failing to meet the minimum bid price requirements.
Chicken Soup for the Soul Entertainment, Inc. has also reportedly failed to reach a consensus with prepetition lenders, citing a lack of a viable budget to support its bankruptcy proceedings. Consequently, the company has moved to liquidate its assets under Chapter 7 (Case No. 24-11442).
As underwriters for CSSE’s 9.50% notes due 2025, B. Riley Securities (NASDAQ: RIL) and Ladenburg Thalmann & Co. Inc. (OTCMKTS: LTSK) were responsible for conducting proper, complete and accurate due diligence, giving them a heightened duty to disclose any potential risks to their clients. Additionally, the lead managers for CSSE’s notes due 2025, Northland Capital Markets, which was acquired by First National of Nebraska, Inc. (OTCMKTS: FINN) and offers securities through Northland Securities, Inc., and The Benchmark Company (LSE: BMK), were also responsible for ensuring that all relevant financial information and risks associated with the notes were transparently communicated to investors.
As registered FINRA broker-dealers, these firms had a responsibility to provide customers with suitable investment advice, and to avoid conflicts of interest. Failure to disclose these conflicts and make suitable recommendations in the best interest of the investor are both legal causes of action that may be alleged in a FINRA arbitration claim for damages. Brokerage firms that recommended the purchase of Chicken Soup for the Soul Entertainment stock or bonds may be held liable for investor losses.
Investors that suffered losses in excess of $100,000 should immediately contact attorney Steven D. Toskes at (888) 997-9956 or by email at investigations@klaymantoskes.com in furtherance of our investigation.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation 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.
Steven D. Toskes, Esq.
KlaymanToskes, P.A.
+1 888-997-9956
investigations@klaymantoskes.com