Atlanta Federal Judge Says JP Turner Was Not Required to Perform Due Diligence on Provident Royalities Offering Materials
Federal Judge Julie E. Carnes stated that no facts or legal authority had been cited to support the allegation that JP Turner & Company owed a duty to confirm the accuracy of Provident Royalties’ statements in the private placement materials it provided to investors, according to an article in Investment News. Accordingly, the judge dismissed the pending class action against JP Turner & Company, an independent broker dealer out of Atlanta, Georgia.
Many independent broker dealers have faced mountains of claims for losses tied to private placements like Provident Royalties and Medical Capital Holdings, causing many to be forced out of business such as QA3 Financial, GunnAllen Financial and Okoboji Financial. Provident Royalties raised $485 million from investors before it collapsed in early 2009 and is now in receivership. JP Turner sold the preferred stock of provident between September 2006 and January 2009.
According to the article in Investment News, the case that was dismissed by Judge Carnes was filed in September 2009, claiming that JP Turner failed to disclose a multitude of material facts, including allegations that money raised from the private placement offerings was not invested as stated in private placement memoranda and that funds were being used as part of a Ponzi scheme.
Private placement cases that have been taken to arbitration have been well received and successful. If have suffered losses in private placement offerings, please contact our securities law firm at 1-800-259-9010 for a confidential consultation.