National investment fraud and securities lawyers KlaymanToskes reports a Financial Industry Regulatory Authority (“FINRA”) arbitration panel has awarded over $7.3 million to the Rosenau Family Research Foundation (formerly The Legacy of Angels Foundation) in a significant victory against Principal Securities. The nonprofit, dedicated to raising awareness and providing education on Cystic Fibrosis and Krabbe disease, alleged that Principal Securities engaged in excessive trading, unsuitable investment recommendations, and supervisory failures.
The Foundation’s claim with FINRA alleged that their broker at Principal Securities recommended allocating a substantial portion of their assets into variable annuities (“VAs”) and variable life insurance policies without fully disclosing the associated costs. These investments included products from PacLife, John Hancock, Principal, Guardian, Lincoln, Jackson, and Nationwide, and the Foundation indicated they had suffered losses up to $5 million.
Variable annuities, while offering tax benefits, are complex and can carry significant risks. The insurance company issuing the VA could fail, potentially halting expected payments. Additionally, if the funds are invested in sub-accounts tied to volatile markets, downturns can negatively impact the investments. High surrender charges for early withdrawal add to the complexity and risk of these investments. Despite these issues, variable annuities often pay high commissions to brokers, which can lead to their inappropriate sale to investors.
Financial advisors and their firms are responsible for providing suitable investment advice and must act in the best interest of their customers. Investment firms may be held liable for any losses incurred by their customers in the event of unsuitable investment recommendations, misrepresentations or omissions of material facts, and/or an overconcentration of the client’s portfolio in one particular investment, class, or market sector. Further, financial professionals and their firms cannot disregard a client’s risk-tolerance when making investment recommendations.
Our law firm can help determine if your investment loss is due to fraud, financial advisor misconduct, or unsuitable investment advice. Depending on your circumstances, you may be entitled to recover your losses through FINRA arbitration.Current and former customers of Principal Securities who suffered investment losses are encouraged to contact attorney Lawrence L. Klayman at 888-997-9956 or by email at investigations@klaymantoskes.com in furtherance of our investigation.
KlaymanToskes is dedicated to representing a wide range of institutional clients, including nonprofits, foundations, endowment funds, pension funds, charitable organizations, municipalities, trusts, retirement plans, corporations, private equity investors, and more, in securities fraud lawsuits and FINRA arbitration claims.
Our team possesses the expertise, resources, and knowledge necessary to investigate your investment losses and build a compelling claim on your behalf. With decades of experience, we have successfully recovered over $600 million (exclusive of attorneys fees and costs) for individuals, organizations, and institutions, ensuring that our clients receive the justice and compensation they deserve.
If you suffered investment losses due to broker misconduct, excessive trading, unsuitable investment recommendations, and/or have concerns regarding your investment portfolio, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation to discuss your recovery options.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lawrence@klaymantoskes.com
www.klaymantoskes.com