YieldStreet Hit With Class Action Alleging Misrepresented Funds

Investment crowdfunding site YieldStreet Inc. was hit with a proposed class action Wednesday by a user who says the company misrepresented its past performance as well as the stability and innovative nature of its programs.

Michael Tecku, who says he bought a note from a beneficially owned subsidiary of YieldStreet for $100,000, sued the alternative investment firm on behalf of anyone who purchased certain debt instruments in one of YieldStreet’s defaulted funds since 2018. The complaint targets investments in borrower payment dependent notes, defined as debt obligations tied to the performance of an underlying loan.

Tecku says YieldStreet made false ...