The Securities Arbitration Law Firm of KlaymanToskes, announced today that it is continuing to pursue securities arbitration claims against UBS Financial Services (NYSE: UBS) with the Financial Industry Regulatory Authority’s (“FINRA”) Office of Dispute Resolution, on behalf of investors who sustained losses in Lehman Brothers 100% Principal Protection Notes. These Notes have also been referred to as Principal Protected Notes.
Earlier this month, FINRA announced that it fined UBS $2.5 million and ordered the broker-dealer to pay $8.25 million in restitution, as a result of “omissions and statements made that effectively misled some investors regarding the ‘principal protection’ feature of 100% Principal-Protection Notes (PPNs) Lehman Brothers Holdings Inc. issued prior to its September 2008 bankruptcy filing.” A copy of the Letter of Acceptance, Waiver and Consent can be found by clicking here. According to FINRA: “From March to June 2008 as the credit crisis worsened, UBS advertised and some UBS financial advisors described the structured notes as principal-protected investments and failed to emphasize they were unsecured obligations of Lehman Brothers, which eventually filed for bankruptcy in September 2008.” Almost $1 billion of Lehman Notes were sold by UBS, and the $10.75 million ordered by FINRA represents about 1% of the value of those Notes. In light of this result, KlaymanToskes will continue to fight for investors in securities arbitration to recover losses sustained in the Lehman Notes.
Many investors of the Lehman Notes have filed claims in the Lehman Brothers bankruptcy proceeding, and are hoping to recover their losses in the Notes through that process instead of filing an individual securities arbitration claim against UBS. However, it is unclear how long that process will take, or whether investors will recover more than a nominal amount. Accordingly, investors should avail themselves of all remedies in attempting to recover their losses, including filing a securities arbitration claim against UBS. Further, investors should determine if they have to contend with any statute of limitations issues.
Additionally, while a class action lawsuit has been filed relating to the Lehman Notes, KlaymanToskes reminds investors of the benefits of filing an individual arbitration claim, as opposed to participating in a class action lawsuit. By participating in a class action lawsuit, an investor may only recover a nominal amount. However, if one has experienced significant investment losses, it may be more beneficial for them to file an individual securities arbitration claim. In 2003, KlaymanToskes conducted a detailed study of securities arbitration versus class action. The study concluded that investors who file a securities arbitration claim traditionally obtain an overall higher rate of recovery as opposed to participating in a class action lawsuit. To view the full results of the comparison, click here.
Investors who have sustained losses in Lehman Brothers Principal Protection Notes or other structured products issued by Lehman can contact KlaymanToskes to explore their legal rights and options. The attorneys at KlaymanToskes are dedicated to pursuing claims on behalf of investors who have suffered investment losses. KlaymanToskes, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.