Securities America: Update On Med Cap/Provident Royalties Settlement
Apparently a potential $200 million settlement between Securities America and investors who lost millions in private placements tied to Medical Capital Holdings and Provident Royalties is not the done deal as previously reported. If investors with $5 million in total claims decide to opt out of the settlement offer, the deal becomes officially off. The story was first reported April 13 by Investment News.
And if that happens, Securities America’s future survival could be at risk.
From 2003 to 2009, about 400 Securities America representatives sold private placements issued by Medical Capital Holdings and Provident Royalties to thousands of investors. In the summer of 2009, the Securities and Exchange Commission (SEC) charged both companies with fraud.