Chimera Energy Suspended by the Securities and Exchange Commission
According to the Securities and Exchange Commission (SEC), Chimera Energy Corporation, of Houston, was subject to a temporary suspension of trading from October 25, 2012, to November 7, 2012. So why was trading in the securities of Chimera Energy suspended, and what does a temporary trading suspension mean for investors?
In a release from last year, the SEC stated that it suspended trading in Chimera Energy’s securities due to concerns about the “accuracy and adequacy of publicly disseminated information concerning, among other things, the statements by Chimera in press releases to investors about the company’s business prospects and agreements.”
What Does This Mean for Investors?
Because these kinds of suspensions have the potential to cause major headaches for investors and a decline in the price of the investment, the SEC generally only suspends trading in cases where it believes investors are potentially at risk. Although the temporary suspension of Chimera Energy has ended, it’s important to realize that the end of a trading suspension doesn’t necessarily mean the end of investor concerns. Although the SEC may not publicly announce the next steps, brokers still may not be able to solicit investors after the suspension ends, and the SEC may continue to investigate concerns. Ultimately, the SEC cautions investors to do their research and proceed with caution.
If you have invested with Chimera Energy Corporation and have questions, or if you have found yourself in a similar situation and are looking for guidance, please reach out to an experienced stockbroker misconduct lawyer with Meyer Wilson today. You can schedule a completely free and confidential case evaluation today by giving us a call or by filling out the convenient online contact form on this page.