SOURCE: The Basile Law Firm P.C.

September 27, 2017 09:00 ET

The Basile Law Firm P.C. and Phillipson & Uretsky, LLP Announces Investigation of Potential Class Action Against New York Based Microcap Toxic Lenders

NEW YORK, NY--(Marketwired - Sep 27, 2017) - Two New York law firms, The Basile Law Firm P.C. and Phillipson & Uretsky, LLP announced today that they have opened an investigation into a potential class action lawsuit against New York based lenders of short-term loans to microcap companies trading on the OTC Market. The class action being investigated and considered is on behalf of OTC Market public microcap companies that have issued convertible redeemable notes that contain both a conversion discount of more than 25% to the market price of that issuers stock, as well as having reserved a multiple of an amount of shares at the time of the closing that would allow the indebtedness reflected by said note to be converted into shares of the issuer based at the discount. The firms are investigating potential claims for damages on behalf of the class for an estimated aggregate amount of more than $1 Billion in lost market capitalization and possible violations of the Civil RICO statute for the collections of an unlawful debt, premised on New York State's criminal usury statute (New York Penal Law 190.40). The firm is also investigating whether there are compensable damages that may have been caused by the conduct of these lenders and whether such conduct violates the Securities and Exchange Act of 1934.

If you are a microcap public company trading on the OTC Market, and have issued a convertible note to a lender in New York after October 1, 2014 that features 1) an exclusive conversion option of the lender to convert the indebtedness into public company stock at a discount of more than 25% to the market price of the securities or 2), issued a "commitment" note in connection with an Equity Line of Credit where the purchaser of that note paid less than the face amount of the principle stated on said note, please contact OTCWORKOUTS to sign up as a potential class action member by visiting the website https://otcworkouts.com/class-action-investigation-information/

If you are a microcap public company trading on the OTC Market and have sold a note to a New York lender after October 1, 2014, whether or not that note has been retired through conversions, the notes' maturity date has not yet been reached, or the notes' maturity date has passed and you are either currently being sued in Federal or State court in New York, or are subject to suit, please contact us to find out more about becoming a potential class member.

OTCWORKOUTS LLC is the premier microcap restructuring and debt remediation company servicing the OTC and NASDAQ markets. The company has remediated more than $10 million in vendor and toxic debt and has successfully restructured more than a dozen OTC companies in 2017 alone. OTCWORKOUTS LLC provides custom tailored restructuring plans to assist microcap companies to recapitalize, remediate liabilities and secure short and long term non-dirty capital. Visit www.otcworkouts.com for more info.

The Basile Law Firm P.C. is a nationally recognized boutique corporate workout and restructuring firm located in New York concentrating on microcap public company workouts, debt remediation, debt and commercial litigation, as well as providing strategic business advisory and outside General Counsel services to microcap companies. Visit www.thebasilelawfirm.com for more information.

Phillipson & Uretsky, LLP is a full-service law firm. The firm has particular expertise in the microcap area and have assisted microcap public companies defending federal lawsuits against toxic, predatory lenders seeking to convert on usurious notes. The firm also focuses on SEC, FINRA and blue-sky state regulatory enforcement proceedings, as well as alternative dispute resolution methods like mediation. For more information about our firm, please visit www.pullp.com.

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