Did your broker or adviser place you in a risky bet on cobalt or lithium?
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On April 20, 2022 GWG Holdings, Inc. (GWG) filed for bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas (case 22-90032). According to an article in the Wall Street Journal, published on the same day, the bankruptcy was due to “accounting issues...read more
If you suffered heavy losses due to your stockbroker or financial adviser’s advice to bet on the rising price of cobalt or lithium, the attorneys at Epperson & Greenidge may be able to help correct the damage to your portfolio.
Electric cars may be the future, but many investors who recently bet ‘long’ on cobalt (a metal that is a key component in their rechargeable batteries) have seen a crash in its price in recent months. In 2017, the prospect of increasing demand for cobalt-containing batteries, which are also used in smartphones, attracted investors. Commodity prices and some company shares soared.
The price of cobalt peaked in April of 2018, then plummeted even as sales of electric vehicles increased. More mining, which led to steady production, along with dynamics in the global supply chain softened the metal’s value, according to reporting by the Wall Street Journal. Shares of smaller companies that mine or otherwise deal with cobalt have also dropped dramatically. Supply is now forecast to exceed demand through 2022, the journal reported.
Likewise the price of lithium, another electric car battery metal, experienced its own roller coaster ride that roughly paralleled the rise and fall of cobalt. The price of lithium also plummeted in early 2018 due to the prospect of increasing supplies.
Companies whose share values plummeted due to the crash in cobalt and lithium prices include: Lithium Americas, Cobalt 27, First Cobalt, and Nemaska Lithium.
If you or a loved one lost money investing in cobalt, lithium or related companies on the recommendation of a stockbroker or adviser, you may be able to recover your losses through a specialized area of the law called FINRA arbitration. It is important to note that if you made the purchase without the recommendation of a broker or adviser, you likely won’t be able to get your money back.
The attorneys at Epperson & Greenidge have extensive experience within FINRA and we specialize in bringing these claims on behalf of investors. We accept all cases on a contingency basis: we only get paid if and when you collect money. Time to file your claim may be limited, so call 877-445-9261 now to speak to an attorney for a free consultation.