Pump and dump faxes legal tips
Pump and dumps are hard to sue on because the obvious sender, the company, could
claim that an investor got the shares and is pumping them with fraudulent
promotional materials, not the company.
Here are some telltale signs that the company is liable:
- You call the company and ask to be taken off the list for the faxes and
the promise to remove you.
- You call the company and ask whether they've reported the pump and dump to
the authorities. If they can't tell you who they reported it to, they
- You tell the company you want to sue the perpetrators and ask them if they
know who did it. If they say no, you ask them to look at their trading
records to determine that. If they are unwilling to do that, that's a sign
they are in cahoots since they're going to be required to pull this data.
- If they won't cooperate willingly with you, then there is probably a
reason. Your only alternative left is to sue them. The subpoena them to turn
over their records of who they paid stock to as well as the trading records
for the stock. If the stock is held in street name, subpoena the firm and
find out which account is trading the stock.
For more info, contact
Newbridge Securities Corporation
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