ForensisGroup “Pump and Dump” (P&D) Expert Witnesses are knowledgeable with this type of securities fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements with the aim of selling the cheaply-purchased stock at a higher price.
Pump and dump scams generally only succeed when dealing with small and micro-cap stocks that trade over the counter because these companies tend to be highly illiquid and tend to show sharp upward price movements when naïve investors who fall prey to pump and dump scams, suddenly drive up volume. When the price rise occurs, the illegal actors quickly unload their positions, allowing them to recoup substantial short-term gains. However, when this happens, the share price then invariably plummets; this leaves victims of the scam deep with worthless shares of the company’s stock.
Our experts provide expertise in securities fraud in cases where an action is brought based on an investigation by the SEC examining a company’s filings, along with security analysts’ reports and advisories, press releases and public statements by the company, and news reports. Many of these Pump & Dump lawsuits alleges that the company and its executives violated federal securities law by disseminating misleading statements and failing to disclose key facts about the financial condition of its customers.
If our selection doesn’t include the Pump and Dump expert witness you need, contact us, and we’ll assist you in finding the right expert for your case and an initial case consultation at no cost.
