CLEVELAND and PHILADELPHIA, Oct. 6, 2017 /PRNewswire/ -- Louis Navellier and Navellier & Associates, Inc. allegedly defrauded their clients and prospective clients by misleading them regarding the performance track record of the "Vireo AlphaSector" investment strategies that the firm offered under the "Vireo" brand name from 2010 to 2013, according to an SEC lawsuit recently filed and currently under review by investor right attorneys Alan Rosca of the Peiffer Rosca Wolf law firm and Paul Scarlato of the Goldman Scarlato & Penny law firm.
The two law firms are investigating potential securities claims on behalf of investors in the Vireo AlphaSector investment strategies offered by Navellier & Associates from approximately 2010 to 2013.
Mr. Navellier and his firm breached their fiduciary duty to clients by ignoring and concealing red flags that the Vireo AlphaSector investment strategies had not performed as Navellier & Associates' advertised, the SEC alleged in its lawsuit. According to the SEC lawsuit, Navellier & Associates' advertisements claimed that "Vireo AlphaSector" investment strategies had a proven track record based on actual results compiled from April 2001 to September 2008, and those strategies significantly outperformed the S&P 500 Index from April 2001 to September 2008. In truth, no client assets had tracked the strategy from April 2001 through September 2008, and instead, the advertised results were 'back tested," according to the SEC. Moreover, even the "back tested" performance claims were substantially overstated, the SEC claims.
The SEC further alleged that Navellier & Associates continued to disseminate materially false advertisements and client communications regarding the performance track record of the Vireo investment strategies, even after they learned of the truth. Once Navellier and his firm concluded that the misrepresentations could get them in legal trouble, they sold the Vireo line of business in August 2013 for $14 million instead of correcting their prior misrepresentations to their clients or informing their clients about their conflicts of interest in selling the Vireo business.
The Peiffer Rosca Wolf and Goldman Scarlato and Penny securities lawyers often represent investors who lose money as a result of investment-related fraud or misconduct and are currently investigating Louis Navellier and Navellier & Associates's alleged false performance claims in advertising materials. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of Louis Navellier's alleged false performance claims in advertising materials may contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or James Booker, for a free no-obligation evaluation of their recovery options, at 888-998-0520 or via e-mail at email@example.com or firstname.lastname@example.org.
Attorney advertising. Paid for by the Peiffer Rosca Wolf and Goldman Scarlato & Penny law firms. Attorneys Alan Rosca, James Booker, and Paul Scarlato are responsible for this release. Please visit our respective websites, www.securitieslitigators.com and www.lawgsp.com, for important disclosures, office locations, and lawyer admissions. Peiffer Rosca Wolf Abdullah Carr & Kane, APLC ("Peiffer Rosca Wolf") and Goldman Scarlato & Penny P.C. ("Goldman Scarlato & Penny").
SOURCE Peiffer Rosca Wolf