Did you lose money investing in Monitronics International (a/k/a Brinks Home Security) and Monitronics Escrow Bonds?
Galvin Legal, PLLC is launching an investigation on behalf of investors who suffered losses investing in Monitronics International (a/k/a Brinks Home Security) and Monitronics Escrow Bonds at the recommendation of their financial advisor. If you suffered losses investing in the investment, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim against the brokerage firm that recommended the investment.
Monitronics International (a/k/a Brinks Home Security) is a wholly owned subsidiary of Ascent Capital Group (OTC: ASCMA, ASCMB) that is in the business of providing alarm monitoring services, and security and protection software to customers in the United States, Canada, and elsewhere. The company is headquartered in Farmers Branch, Texas and employs approximately 1,085 people.
Purportedly, in May 2019, Monitronics International (a/k/a Brinks Home Security) announced a Restructuring Support Agreement with its biggest creditors. The terms included the conversion of at least $685,000 from debt to equity. That included $585,000 in Senior Notes paying 9.125% due April 1, 2020. On August 8, 2019, the United States Bankruptcy Court for the Southern District of Texas confirmed a prepackaged plan of reorganization for the company and its subsidiaries.
On August 30, 2019, Monitronics International (a/k/a Brinks Home Security) purportedly emerged from Chapter 11 bankruptcy protection having eliminated $900,000,000.00 in debt and had merged with Asset Capital Group. Upon emergence from the bankruptcy, the company was also able to access $295,000 in additional liquidity through a $150,000 term loan facility and a $145,000 revolving facility. Following its bankruptcy, shares of the company began trading in the OCT markets under the ticker symbol SCTY. As of June 30, 2020, shares were priced around $3.40.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Due Diligence Requirement
FINRA requires brokerage firms to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokerage firms that fail to conduct adequate due diligence on investments they recommend, such as Monitronics International (a/k/a Brinks Home Security) and Monitronics Escrow Bonds, or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing in Monitronics International (a/k/a Brinks Home Security) and Monitronics Escrow Bonds and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.
