That's a good question. My guess is that the investor is responsible, ultimately. The investor can hardly claim ignorance, but this sometimes works. But the broker may pay for some of the losses if the case goes to arbitration, or before, if it can be settled prior to going to arbitration. It'sa sometimes more costly to go to arbitration, than it is to settle now. The brokerage's cashiers should have noticed the restrictive legend. MVPH may even have a liability, but only if the certificates did not bear the restrictive legend.
If any of you out there are in this position, please E-Mail me with the particulars.
Bear in mind that I am not a securities attorney, so please take my post as a generality. My experience in the business is the basis for my post, and should not be taken as the final word. But I think there is some wiggle room for the investor IMHO. |
