Michael Best Partner Brad Jacobsen’s article, “So what if my digital token is a security? Personal liability in claims made for rescission damages” was featured in MSI Global Alliance on May 3, 2018.
“A fair question, no doubt. The brief answer is that failure to comply with applicable state and federal securities laws can result in significant personal liability (civil and criminal). For this post, I will focus on one of the most commonly used civil claims by plaintiffs’ counsel to obtain monetary damages in connection with securities offerings: A claim for Rescission.
A claim for rescission is essentially seeking to unwind the investment transaction where there was a violation of securities laws. Typical violations include:
• Failure to register a security;
• Failure to properly qualify for an exemption from registration of a security;
• Using a “finder” or otherwise paying an improperly licensed party a fee in connection with the capital raise; and/or
• Failure to properly disclose all material information needed for the investors to make an informed investment decision.”
To read the entire article, click here.