Right of Rescission

The Right of Rescission is a legal right that allows an investor to unwind a securities transaction and receive their money back (and sometimes interest) if the offering violated securities laws or involved material misstatements or omissions. In private offerings, a Right of Rescission can arise from improper exemption compliance or disclosure failures, and managing Right of Rescission risk is a key reason companies follow Regulation D procedures carefully.

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Ryan Roberts Startup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.