Marpai, Inc.

Kurta Law is investigating brokers who recommended that their clients purchase shares of Marpai, 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 Marpai, 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 Marpai?

According to its website, Marpai Inc. is a technology-powered third-party administrator for self-funded employer health plans.

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

Marpai Stock

Marpai 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 $2.49 per share. This massive drop in value was not surprising, given the risks clearly disclosed in the company’s prospectus.

Risks Associated with Marpai

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.

The prospectus discloses that Marpai is a development-stage company with no operating history and no revenues. Marpai’s success was dependent on its ability to integrate Marpai Health and Continental Benefits and effectively manage the combined company. Furthermore, because it acquired Continental Benefits, which had a history of operating losses, Marpai acknowledged that it may not be able to generate sufficient revenue to achieve profitability as a result of that acquisition.  Continental Benefits was a party to a number of lawsuits, which Marpai could be subjected to liability for. The prospectus further indicated that Continental Benefits may be subject to penalties by the IRS.

The prospectus noted that investors could lose all or part of their investments because the market price of Marpai’s Class A common stock may be volatile and may decline regardless of the company’s operating performance.

The prospectus also indicated several risks associated with Marpai’s research and development operations in Israel, where political, economic, and military instability could adversely affect the company’s operations. Investors could also face difficulties enforcing U.S. judgments or asserting U.S. securities law claims in Israel.

Other risks included issues with AI, competition in the industry, security and data risks, further acquisitions, intellectual property protection, compliance with government laws and regulations, etc.

ThinkEquity Underwriter

ThinkEquity served as the underwriter of Marpai. 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 the motivation to overlook certain risks.

What Can I Do If I Suffered Losses?

If you lose money investing in Marpai, 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.