KlaymanToskes, www.klaymantoskes.com, announces an investigation on behalf of customers of FMSbonds (“FMS”) who were recommended to purchase Frontier Communications (NASDAQ:FTR) (“Frontier”) bonds. These bonds may have been marketed and sold to investors who were risk averse, such as retirees or other conservative investors, that were seeking income and capital preservation and were not explained the potential risks.
Under FINRA Rules, broker-dealers have an obligation to make suitable recommendations to their customers and to conduct adequate due diligence into investments before recommending them to customers. Furthermore, FMSbonds was obligated to properly supervise the activities of its brokers to determine if they were making suitable recommendations to their customers. FMS has been sanctioned multiple times by the Financial Industry Regulatory Authority (“FINRA”) for its offer and sale of bonds.
Frontier recently filed for bankruptcy protection after announcing that it would skip issuing bond payments due in March. Investors may seek damages for violations of sales practice rules and regulations in FINRA Arbitration if they were recommended to purchase Frontier bonds.
The sole purpose of this release is to investigate on behalf of customers of FMSbonds who were recommended to purchase Frontier bonds. Current and former customers of FMSbonds who have information relating to the manner in which the firm represented Frontier bonds are encouraged to contact Lawrence L. Klayman, Esq. of KlaymanToskes at (561) 542-5131, or visit our website at www.klaymantoskes.com.