OAKLAND, Calif.–(BUSINESS WIRE)–Gibbs Law Group is investigating legal claims on behalf of investors of GPB Funds, after the company announced a decline in value of its funds of up to 73%. Its funds include GPB Automotive Portfolio; GPB Holdings I; GPB Holdings II; GPB Waste Management Fund; GPB Cold Storage; and GPB NYC Development. Our GPB Capital lawsuit investigation involves claims against the brokerage firms that sold GPB funds to investors.
To speak privately with an attorney regarding our GPB investigation, click here.
On June 21, 2019, InvestmentNews reported that GPB Capital announced sharp declines in the values of its investment funds. According to the article, GPB revealed that at the end of 2018, its funds had declined in value by 25% to 73%, with its two largest funds declining by nearly 40% and 25.4% respectively. The company has yet not revealed the true and current value of the funds for 2019.
This reduction in GPB fund value follows a slew of issues reported at GPB Capital. In 2018, GPB announced that it was suspending redemptions to focus on accounting and financial reporting issues. GPB later announced that its auditor resigned “due to perceived risks…that fell outside of their internal risk tolerance parameters.” Most recently, GPB informed investors that authorities raided GPB Capital’s New York offices unannounced and collected material. According to InvestmentNews and other media outlets, a number of regulators and legal authorities have launched investigations into GPB, including the FBI, SEC, and FINRA.
GPB has reportedly raised more than $1.8 billion in investor funds across its various private placement offerings. It has been reported that brokers received more than $100 million in commissions from selling investments in GPB funds to investors and that brokers were incentivized to sell the GPB Funds because of the high commissions and fees they earned. More than 60 brokerage firms sold GPB to investors, including Sagepoint Financial, Woodbury Financial Services, FSC Securities and Advisor Group.
Our investment fraud attorneys are currently investigating claims on behalf of GPB investors against the brokerage firms that sold GPB Funds. If you invested in a GPB Fund and would like to speak privately with an investment fraud attorney to learn more about our investigation and how you may be able to recover your losses, visit our website or contact our securities team directly at (888) 410-2925.
About Gibbs Law Group
Gibbs Law Group is a California-based law firm committed to protecting the rights of investors and consumers nationwide who have been harmed by corporate fraud and misconduct. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Top Class Action Attorneys Under 40,” “Consumer Protection MVP,” and “Top Cybersecurity/ Privacy Attorneys Under 40.”
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