EzFill Holdings

Kurta Law is investigating brokers who recommended that their clients purchase shares of EzFill Holdings, Inc. This investment came with substantial risks that made it unsuitable for many investors. These risks appear in the prospectus, the SEC filing that companies use to disclose their business strategy and related risks prior to offering the securities for sale. Unsuitable investments violate FINRA Rule 2111 and Regulation Best Interest, and investors who incur losses may be able to recover via FINRA arbitration.

If your broker recommended that you invest in EzFill Holdings, you may have a claim against the firm through FINRA arbitration.  FINRA arbitration offers a quicker and cheaper remedy for investors than suing in civil court. Contact (877) 600-0098 or email info@kurtalawfirm.com to speak to a securities attorney for free today.

What is EzFill Holdings?

EzFill Holdings is an app-based mobile fuel delivery service which provides fuel delivery on-demand or in-subscription to customers.

Investors should also know that this company is registered as an emerging growth company, meaning that it can make limited disclosures in its prospectus. Less information generally means more risk.

EzFill Holdings Stock

EzFill Holdings (EZFL) investments involve a high degree of risk, according to the company’s prospectus. The company debuted at $4.00 per share and recently traded at $2.09. This massive drop in value was not surprising, given the risks clearly disclosed in the company’s prospectus.

Risks Associated with EzFill Holdings

Brokerage firms that approve an investment are required to understand the risks associated with an investment. Furthermore, brokers must accurately represent the risks associated with certain investments.

According to the prospectus, there were several risks related to EzFill Holdings’ business and ownership of common stock. Auditors expressed substantial doubt about the company’s ability to continue as an ongoing concern. The prospectus also indicated that the company’s failure to maintain effective internal control over financial reporting could cause financial reports to be inaccurate.

Other risks included operating difficulties due to the COVID-19 pandemic, lack of insurance coverage for operating and litigation risks, changes in climate change laws and regulations, changes in fuel prices, dependence on a single fuel supplier, a lack of a written agreement with said fuel supplier, changes in commodity market prices, decline of retail gasoline industry, compliance with new and existing laws and regulations, competition, etc.

ThinkEquity Underwriter

ThinkEquity served as the underwriter of EzFill Holdings. Investors should know about this broker’s potential conflicts of interest. An underwriter should keep potentially overly risky investments from trading on the public stock market. But because underwriters make money by bringing new stocks to market, they may have a motivation to overlook certain risks.

What Can I Do If I Suffered Losses?

If you lose money investing in EzFill Holdings, consider reaching out to a Kurta Law securities attorney. Our securities attorneys have 5-star reviews on Google and a proven track record when it comes to securing fair settlements for our clients. Call (877) 600-0098 or email info@kurtalawfirm.com.