SpaceX’s IPO Raises Red Flags for Pre-IPO Investors
In his latest TalkMarkets article, investment fraud lawyer Jake Zamansky encourages investors to contact his office if they have concerns regarding pre-IPO investments that may ultimately be “Russian doll” investments.
SpaceX’s highly anticipated IPO has exposed a troubling side of the booming pre-IPO investment market. Some investors who believed they owned valuable SpaceX shares through Special Purpose Vehicles (SPVs) reportedly discovered that the shares they expected to cash in on had been sold years earlier. As Wall Street increasingly markets access to private companies through complex, layered investment structures, investors should understand whether they actually own the shares they were promised—or merely have “exposure” through a Russian-doll-like chain of funds. Those who believe they were misled about a pre-IPO investment may want to have an investment fraud attorney review what they were actually sold.