Marathon Patent Group

Kurta Law is investigating broker recommendations of shares of Marathon Patent Group (NASDAQ:MARA). These investments may have been too risky for many investors. Brokers who recommend overly risky investments violate securities rules and regulations, including FINRA Rule 2111 and Regulation Best Interest. These rules require brokers to carefully consider their investor’s risk tolerance and to perform their due diligence before making recommendations.  

Investors who believe they suffered stock losses following broker recommendations of Marathon Patent Group may be able to recover via FINRA arbitration. FINRA arbitration is the process that brokerage firms typically require investors to use instead of suing in civil court. Kurta Law Securities attorneys can guide investors through every step of the process and provide free case consultations. Call (877) 600-0098 or email info@kurtalawfirm.com today.  

The Offering  

The prospectus dated April 18, 2017, announced an offering of 3,800,000 shares of common stock to institutional investors at a price of $0.70 per share.  

At the time of the offering, Marathon Patent Group had received notification from NASDAQ that it was in danger of being de-listed from the stock exchange.  

About Marathon Patent Group  

According to the prospectus, Marathon Patent Group acquires patents and patent rights. They claim to monetize the patents by entering into licensing agreements and initiating enforcement actions against infringing parties.  

Risks Associated with Marathon Patent Group  

The prospectus discloses the following risks associated with Marathon Patent Group. These are the risks that Kurta Law has elected to highlight. You can see the full list on page 3 of the prospectus and page S-7 of the supplement.  

Immediate Substantial Dilution  

The price per share of the common stock is substantially higher than the tangible book value of the common stock. Shareholders would experience immediate, substantial dilution once they made their purchase.  

Uncertainty of Profitability  

The prospectus acknowledges that the chance of future profitability was uncertain.  

Financing  

It was also uncertain that Marathon Patent Group would be able to obtain adequate financing.  

Litigation Proceedings 

Legal proceedings initiated against infringing companies could be time-consuming and costly.  

Unpredictable Revenue  

The amount and timing of the receipt of funds could make the stream of revenue unpredictable.  

Aegis Capital Corp. Underwriting    

Investors should know that Aegis Capital Corp. served as the underwriter for this offering. Underwriters take on risk in exchange for a fee, which could motivate certain investment banks to underwrite investments that pose too much risk for the average retail investor. Additionally, brokers may have conflicts of interest when they recommend shares that are underwritten by an affiliate of their brokerage firm. 

Kurta Law Can Help  

Contact Kurta Law today for a free case evaluation – keep in mind that you have a limited time to file a claim. Our attorneys do not collect a fee unless we win your case. Call (877) 600-0098 or email info@kurtalawfirm.com.