Lawsuits Filed for CION Investment Corp. (CIC) Investment Losses
The Levin Papantonio Rafferty law firm currently represents customers in claims to recover their investment losses in CION Investment Corp. On Tuesday, October 5, the shares of CION Investment Corp. began trading on the New York Stock Exchange under the ticker “CION.” Unfortunately for investors, shares closed trading on October 5 at $11.85 – representing a loss of over 40% of the principal for investors who purchased shares of CION at $10/share (shares underwent a reverse share split in September, resulting in an approximate halving of investors shares). Since CION was created in 2011, the markets have performed exceptionally well – with the S&P 500 up over 250%, the Dow Jones up over 200%, The Dow Jones REIT Index up over 200%.
Brokers and advisors who recommended CION should have understood the substantial risks and conflicts of interest inherent in CION before recommending it to their clients. A bare-bones due diligence review by a broker would have revealed that investments in CION “May be considered speculative and involves a high degree of risk, including the risk of a substantial loss of investment.” One significant issue was the high fees and commissions charged when investors purchased CION. IN fact, only approximately 88.5% of the investors’ capital actually went toward making investments – approximately 10% of the investor’s capital went toward paying broker’s selling commissions and dealer manager fees. CION was a newly formed company with no operating history, and when it was started in 2011 it had not even identified any specific investments it would make with the proceeds it raised. CION also disclosed substantial conflicts of interest issues. CION should not have been sold to conservative investors or retirees or other individuals who were not willing to take on a speculative and high degree of risk.
If you were an investor who was sold CION Investment Corp., you may have a legal right to recover your losses. However, to recover you would need to file a claim. Our firm currently represents investors in claims to recover their losses in CION. Our investigation has uncovered that many brokers also sold their clients other similar non-traded or high-risk products. We provide free and confidential evaluations, and we represent clients on a contingency fee basis meaning there are no fees or costs unless we first make a recovery for you.
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At a time in our life when we were most vulnerable we lost control of our finances. We fell victim to a broker that took huge commissions and did not disclose that we were not able to access our money. Peter Mougey and his wonderful staff worked with us to make us whole again and got our money released. I cannot say enough about their work ethic, professionalism, and kindness during this stressful time for us. We had a 100% positive conclusion to our case and we strongly recommend Peter and the firm. We can now sleep at night! Fred & Pat H.
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