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It would be a duty to disclose all material information affecting an investor's decision to purchase securities. The fact that cash on hand decreased by 60% is, arguably, a material fact. This could lead to a violation by or complaint against the company. More information would be necessary to determine whom you would notify or file a complaint (possibly the state attorney general's office); or through the SEC. Or whether you would bring a private action brought by yourself. In any event, a decrease in cash by 60% without disclosing this fact, appears on its face a material fact that should have been disclosed.
Good evening. another expert here. In order to determine whether or not an SEC violation occurred, you would have to know whether or not the corporation was itself subject to SEC jurisdiction. It sounds like you bought into a corporation that was not publicly traded in sufficient quantity of shares to be regulated by SEC. Please provide additional information including the name of the corporation, the state of its incorporation, and the exchange on which it was traded. The fact that the corporation might not be under SEC jurisdiction, does not mean that no law violation occurred in the stock sale to you.. It may well be a violation of state law, and not federal.
I am not able to do that kind of research online. I can only suggest that you retain New Jersey corporation lawyer who can examine the corporation's actual offering documents.