BDC INVESTOR ALERT: Medley Capital Corp Files for Bankruptcy Protection in the Wake of Portfolio Loan Losses Attributed to the COVID Pandemic

BDC INVESTOR ALERT: Medley Capital Corp Files for Bankruptcy Protection in the Wake of Portfolio Loan Losses Attributed to the COVID Pandemic

On March 7, 2021, Medley Capital Corp. (NYSE: MCC), a direct subsidiary of Medley Management Inc. (NYSE: MDLY), filed for Bankruptcy Protection from creditors – mostly investors.  Medley Management Inc., is an “alternative asset management firm offering yield solutions to retail and institutional investors” through two Business Development Companies (“BDCs”), Medley Capital and Sierra Income Corp., a non-traded BDC. Medley Capital Corp and Sierra Income Corp, invested in non-public companies, under the direction and advice of Medley Management’s affiliate SIC Advisors, LLC.  The two BDCs made loans to non-public companies that did not have access to the traditional publicly traded…

LORDSTOWN MOTORS CORP CLASS ACTION ALERT: Securities Law Firm KlaymanToskes Comments on Recent Class Action Lawsuit in Electric Vehicle Truck Manufacturer

LORDSTOWN MOTORS CORP CLASS ACTION ALERT: Securities Law Firm KlaymanToskes Comments on Recent Class Action Lawsuit in Electric Vehicle Truck Manufacturer

Boca Raton, Florida — March 22, 2021 — The Securities Law Firm of KlaymanToskes (“KT”) provides a Lordstown Motors Corp. (NASDAQ:RIDE) Alert to shareholders concerning the Class Action Lawsuit (Case 21-CV-00616) filed March 18, 2021 in the United States District Court of the Northern District of Ohio, Youngstown Division, for the class period from August 3, 2020 and March 17, 2021.   Lordstown Motors Corp. is a nascent company with a limited history of operating as manufacturer of Electric Vehicle (EV) trucks.  According to the class action lawsuit, “Throughout the Class Period, Defendants made materially false and misleading statements regarding the…

NOTICE TO WORKHORSE GROUP SHAREHOLDERS: Securities Law Firm KlaymanToskes Comments on Recent Class Action Lawsuit in Electric Vehicle Company

NOTICE TO WORKHORSE GROUP SHAREHOLDERS: Securities Law Firm KlaymanToskes Comments on Recent Class Action Lawsuit in Electric Vehicle Company

Boca Raton, Florida — March 16, 2021 — The Securities Law Firm of KlaymanToskes (“KT”) provides notice to all Workhorse Group, Inc. (NYSE:WKHS) shareholders concerning the Class Action Lawsuit (Case 2:21-cv-02072) filed March 8, 2021 in the United States District Court of the Central District of California, for the class period from July 7, 2020 and February 23, 2021.   Workhorse Group is an Electric Vehicle (EV) stock which represents a highly speculative investment.  According to the class action lawsuit, “Defendants made materially false and/or misleading statements, and failed to disclose that: (1) the Company was merely hoping that USPS…

FINRA Fines Cetera $1 Million for Failure to Supervise Private Securities Transactions in Client Accounts

FINRA Fines Cetera $1 Million for Failure to Supervise Private Securities Transactions in Client Accounts

FINRA recently disclosed that Cetera Advisor Networks LLC, Cetera Advisors, LLC and Cetera Financial Specialists, LLC, (Cetera Firms) agreed to an Acceptance, Waiver and Consent (AWC) Case #2015046716901.  The Cetera Firms were fined $1 million and were ordered to review and revise, their systems, policies and procedures with respect to the supervision of “private securities” transactions in client accounts, for brokers who were dually-registered. According to FINRA, “From January 2011 through December 2018, Networks and Advisors, and from November 2012 through January 2018, Specialists (the relevant time periods) each failed to establish, maintain and enforce a supervisory system and written…

FINRA Suspends Madison Avenue Securities Broker for Mutual Fund Sales Practice Violations

FINRA Suspends Madison Avenue Securities Broker for Mutual Fund Sales Practice Violations

In November 2020, the securities industry watchdog, the Financial Regulatory Industry Authority (“FINRA”) suspended, Vincent Anthony Virga, after an Acceptance, Waiver and Consent (AWC) Order was accepted, (FINRA Case #2019061187801).  According to FINRA, an AWC was issued in which Virga was fined $5,000, suspended from association with any FINRA member in all capacities for one month, and ordered to pay $19,687, plus interest, in restitution to a customer.  The suspension is in effect from December 21, 2020, through January 20, 2021. According to the AWC, “Without admitting or denying the findings, Virga consented to the sanctions and to the entry…

Stanford Law School Cornerstone Research Report Released with New Developments for IPOs  and SPACs

Stanford Law School Cornerstone Research Report Released with New Developments for IPOs and SPACs

In February 2021, the Stanford Law School in collaboration with Cornerstone Research published the Class Action Filings, 2020 Year in Review, Report which detailed a wide range of statistics related to class action filings and upcoming trends.  In particular, the increase in Initial Public Offerings (IPOs) for Operating Companies and Special Purpose Acquisition Companies (SPACs) has grown substantially during 2020 when compared to recent periods which portends an increase in class action lawsuits related to IPOs. During 2020, Operating Company IPOs increased from 112 in the previous year to 165 for a 47% increase in class action filings compared to…

KlaymanToskes Investigates JP Morgan in Light of OCC $250 Million Civil Money Penalty Against JP Morgan Chase Bank, N.A. for Inadequate Supervision of Investment Advisory Business

KlaymanToskes Investigates JP Morgan in Light of OCC $250 Million Civil Money Penalty Against JP Morgan Chase Bank, N.A. for Inadequate Supervision of Investment Advisory Business

On November 24, 2020, the Office of the Comptroller of the Currency (“OCC”) announced it would assess a $250 million civil money penalty against JPMorgan Chase Bank, N.A.  The OCC is responsible for the regulatory oversight of all Commercial Banks, including Bank Holding Companies such as JP Morgan Chase, which has under its umbrella of financial companies, broker dealer JP Morgan.  According to the news release, OCC “intends to initiate civil money penalty proceedings against the Bank pursuant to 12 U.S.C. § 1818(i), through the issuance of a Notice of Assessment of a Civil Money Penalty, for engaging in unsafe…

KlaymanToskes Investigates David Lerner Associates Recommended Investments in Proprietary Non-Traded Investments Concentrated in Energy Sector

KlaymanToskes Investigates David Lerner Associates Recommended Investments in Proprietary Non-Traded Investments Concentrated in Energy Sector

National securities fraud law firm, KlaymanToskes (“KT”), announces  its investigation into David Lerner Associates for the unsuitable concentration in proprietary products invested non-traded Oil & Gas Investments offered exclusively to its clients.  The concentrated investments include the Energy 11 LP, Energy Resource 12 LP and Spirit of America Fund (SOAEX).  In addition to the precipitous loss in value, the majority of the interest payments received by investors are now considered, return of capital. According to securities attorney, Lawrence L. Klayman, “David Lerner Associates recommended proprietary products that were unsuitable for most conservative or retired investors”.  According to the Energy 11…

SEC Charges Broker-Dealers and Investment Advisory Firms for the Sales of Complex Exchange-Traded Products With More than $3 Million Returned to Retail Investors

SEC Charges Broker-Dealers and Investment Advisory Firms for the Sales of Complex Exchange-Traded Products With More than $3 Million Returned to Retail Investors

The securities industry watchdog, the Securities and Exchange Commission (“SC”) filed settled actions against three investment advisory firms and two dually-registered broker-dealer and advisory firms for violations that related to unsuitable sales of complex exchange-traded products (“ETFs”) to retail investors for the period between January 2016 and April 2020. According to SEC, “The actions were filed against American Portfolios Financial Services/American Portfolios Advisors Inc., Benjamin F. Edwards & Company Inc., Royal Alliance Associates Inc., Securities America Advisors Inc., and Summit Financial Group Inc. – will result in the return of over $3 million to harmed investors’.  According to a news release by the SEC on…

FINRA Barred, NPB Financial Group Ex-Broker, Cynthia Diane Cowden for Unsuitable Investment Recommendations in Illiquid Non-Traded Securities

FINRA Barred, NPB Financial Group Ex-Broker, Cynthia Diane Cowden for Unsuitable Investment Recommendations in Illiquid Non-Traded Securities

The securities industry watchdog, the Financial Regulatory Industry Authority (“FINRA”) barred, NPB Financial Group’s, Ex-Broker Cynthia Diane Cowden, for Unsuitable Investment Recommendations to a retired couple and an individual senior investor.  The recommended investments at issue were illiquid non-traded REITs and non-traded closed end funds.  According to FINRA, the barred broker’s recommendations resulted in unsuitable, securities concentration in illiquid securities that exceeded concentration limits established by the California State Regulations designed to protect investors. FINRA required that Cynthia Diane Cowden’s investment advice should have had reasonable basis for her recommendations, based on the investor’s “age, other investments, financial situation and…

ATTENTION MERRILL LYNCH CUSTOMERS WITH ACCOUNTS AT BOSTON BRANCHES:  KlaymanToskes Commences Investigation for Potential Negligent Supervision of Financial Advisors and Customer Accounts

ATTENTION MERRILL LYNCH CUSTOMERS WITH ACCOUNTS AT BOSTON BRANCHES: KlaymanToskes Commences Investigation for Potential Negligent Supervision of Financial Advisors and Customer Accounts

National investment fraud law firm, KlaymanToskes (“KT”), has commenced an investigation in light of a recent regulatory action concerning Merrill Lynch (NYSE:BAC) and its Boston Financial Center branch, which also oversees the Back Bay, Cambridge, Andover, and Beverly branches.  The New Hampshire Department of State, Bureau of Securities Regulation recently began an investigation into the trading practices of Merrill Lynch. Merrill Lynch paid one investor $40 million, the largest settlement to an individual in recent FINRA history, based on the allegations that eventually lead to the termination of Merrill Lynch financial advisor, Charles Ernest Kenahan (“Kenahan”) from its Boston Financial…

NOTICE TO UBS CUSTOMERS WITH YES ACCOUNTS:  KlaymanToskes Investigates Additional Losses Now Exceeding 30%

NOTICE TO UBS CUSTOMERS WITH YES ACCOUNTS: KlaymanToskes Investigates Additional Losses Now Exceeding 30%

KlaymanToskes, www.klaymantoskes.com, continues its investigation into the Yield Enhancement Strategy (“YES”) recommended by UBS (NYSE:UBS) to its customers.  Losses have increased to more than 30% for investors who continued the YES strategy through the recent market event precipitated by COVID-19.  The investigation focuses on UBS’s sales practices in connection with the recommendation of the high-risk YES program for customers who sought conservative investments. High net-worth investors seeking conservative investments to preserve their principal were encouraged to participate in the YES program and were told it was a low-risk overlay strategy to generate additional income.  The YES program utilized an options…

NOTICE TO GOLDMAN SACHS CUSTOMERS WITH MARGIN ACCOUNTS:  KlaymanToskes Commences Investigation into Damages Sustained by Investors Who were Forced to Sell Securities Due to Margin Calls

NOTICE TO GOLDMAN SACHS CUSTOMERS WITH MARGIN ACCOUNTS: KlaymanToskes Commences Investigation into Damages Sustained by Investors Who were Forced to Sell Securities Due to Margin Calls

KlaymanToskes (“KT”), www.klaymantoskes.com, announced today that it is investigating damages sustained by investors with Goldman Sachs Group (NYSE:GS) (“Goldman”) accounts who were forced to sell securities due to margin calls.  The investigation focuses on Goldman’s potential negligence and mismanagement of leveraged accounts.  Recently, investors quickly saw the major stock indices lose significant value after closing on Friday, February 21, 2020, at near 52-week highs.  The market volatility has been precipitated by COVID-19.  Many investment portfolios, like the stock indices, have also seen tremendous declines, leaving leveraged accounts especially at risk of margin calls. The use of securities in an investment…

NOTICE TO MORGAN STANLEY CUSTOMERS WITH MARGIN ACCOUNTS:  KlaymanToskes Commences Investigation into Damages Sustained by Investors Who were Forced to Sell Securities Due to Margin Calls

NOTICE TO MORGAN STANLEY CUSTOMERS WITH MARGIN ACCOUNTS: KlaymanToskes Commences Investigation into Damages Sustained by Investors Who were Forced to Sell Securities Due to Margin Calls

KlaymanToskes (“KT”), www.klaymantoskes.com, announced today that it is investigating damages sustained by investors with Morgan Stanley (NYSE:MS) accounts who were forced to sell securities due to margin calls.  The investigation focuses on Morgan Stanley’s potential negligence and mismanagement of leveraged accounts.  Recently, investors quickly saw the major stock indices lose significant value after closing on Friday, February 21, 2020, at near 52-week highs.  The market volatility has been precipitated by COVID-19.  Many investment portfolios, like the stock indices, have also seen tremendous declines, leaving leveraged accounts especially at risk of margin calls. The use of securities in an investment account…

NOTICE TO AMERIPRISE FINANCIAL CUSTOMERS WITH MARGIN ACCOUNTS:  KlaymanToskes Commences Investigation into Damages Sustained by Investors Who were Forced to Sell Securities Due to Margin Calls

NOTICE TO AMERIPRISE FINANCIAL CUSTOMERS WITH MARGIN ACCOUNTS: KlaymanToskes Commences Investigation into Damages Sustained by Investors Who were Forced to Sell Securities Due to Margin Calls

KlaymanToskes (“KT”), www.klaymantoskes.com, announced today that it is investigating damages sustained by investors with Ameriprise Financial, Inc. (NYSE:AMP) (“Ameriprise”) accounts who were forced to sell securities due to margin calls.  The investigation focuses on Ameriprise’s potential negligence and mismanagement of leveraged accounts.  Recently, investors quickly saw the major stock indices lose significant value after closing on Friday, February 21, 2020, at near 52-week highs.  The market volatility has been precipitated by COVID-19.  Many investment portfolios, like the stock indices, have also seen tremendous declines, leaving leveraged accounts especially at risk of margin calls. The use of securities in an investment…

NOTICE TO JANNEY MONTGOMERY SCOTT CUSTOMERS WITH MARGIN ACCOUNTS:  KlaymanToskes Commences Investigation into Damages Sustained by Investors Who were Forced to Sell Securities Due to Margin Calls

NOTICE TO JANNEY MONTGOMERY SCOTT CUSTOMERS WITH MARGIN ACCOUNTS: KlaymanToskes Commences Investigation into Damages Sustained by Investors Who were Forced to Sell Securities Due to Margin Calls

KlaymanToskes (“KT”), www.klaymantoskes.com, announced today that it is investigating damages sustained by investors with Janney Montgomery Scott, LLC (“Janney”) accounts who were forced to sell securities due to margin calls.  The investigation focuses on Janney’s potential negligence and mismanagement of leveraged accounts.  Recently, investors quickly saw the major stock indices lose significant value after closing on Friday, February 21, 2020, at near 52-week highs.  The market volatility has been precipitated by COVID-19.  Many investment portfolios, like the stock indices, have also seen tremendous declines, leaving leveraged accounts especially at risk of margin calls. The use of securities in an investment…

NOTICE TO STIFEL NICOLAUS CUSTOMERS WITH MARGIN ACCOUNTS:  KlaymanToskes Commences Investigation into Damages Sustained by Investors Who were Forced to Sell Securities Due to Margin Calls

NOTICE TO STIFEL NICOLAUS CUSTOMERS WITH MARGIN ACCOUNTS: KlaymanToskes Commences Investigation into Damages Sustained by Investors Who were Forced to Sell Securities Due to Margin Calls

KlaymanToskes (“KT”), www.klaymantoskes.com, announced today that it is investigating damages sustained by investors with Stifel, Nicolaus & Company (NYSE:SF) (“Stifel”) accounts who were forced to sell securities due to margin calls.  The investigation focuses on Stifel’s potential negligence and mismanagement of leveraged accounts.  Recently, investors quickly saw the major stock indices lose significant value after closing on Friday, February 21, 2020, at near 52-week highs.  The market volatility has been precipitated by COVID-19.  Many investment portfolios, like the stock indices, have also seen tremendous declines, leaving leveraged accounts especially at risk of margin calls. The use of securities in an…

NOTICE TO RAYMOND JAMES FINANCIAL CUSTOMERS WITH MARGIN ACCOUNTS: KlaymanToskes Commences Investigation into Damages Sustained by Investors Who were Forced to Sell Securities Due to Margin Calls

KlaymanToskes (“KT”), www.klaymantoskes.com, announced today that it is investigating damages sustained by investors with Raymond James Financial (NYSE:RJF) (“Raymond James”) accounts who were forced to sell securities due to margin calls.  The investigation focuses on Raymond James’s potential negligence and mismanagement of leveraged accounts.  Recently, investors quickly saw the major stock indices lose significant value after closing on Friday, February 21, 2020, at near 52-week highs.  The market volatility has been precipitated by COVID-19.  Many investment portfolios, like the stock indices, have also seen tremendous declines, leaving leveraged accounts especially at risk of margin calls. The use of securities in…

NOTICE TO WELLS FARGO CUSTOMERS WITH MARGIN ACCOUNTS: KlaymanToskes Commences Investigation into Damages Sustained by Investors Who were Forced to Sell Securities Due to Margin Calls

KlaymanToskes (“KT”), www.klaymantoskes.com, announced today that it is investigating damages sustained by investors with Wells Fargo & Company (NYSE:WFC) (“Wells Fargo”) accounts who were forced to sell securities due to margin calls.  The investigation focuses on Wells Fargo’s potential negligence and mismanagement of leveraged accounts.  Recently, investors quickly saw the major stock indices lose significant value after closing on Friday, February 21, 2020, at near 52-week highs.  The market volatility has been precipitated by COVID-19.  Many investment portfolios, like the stock indices, have also seen tremendous declines, leaving leveraged accounts especially at risk of margin calls. The use of securities…

NOTICE TO UBS CUSTOMERS WITH MARGIN ACCOUNTS: KlaymanToskes Commences Investigation into Damages Sustained by Investors Who were Forced to Sell Securities Due to Margin Calls

KlaymanToskes (“KT”), www.klaymantoskes.com, announced today that it is investigating damages sustained by investors with UBS (NYSE:UBS) accounts who were forced to sell securities due to margin calls.  The investigation focuses on UBS’s potential negligence and mismanagement of leveraged accounts.  Recently, investors quickly saw the major stock indices lose significant value after closing on Friday, February 21, 2020, at near 52-week highs.  The market volatility has been precipitated by COVID-19.  Many investment portfolios, like the stock indices, have also seen tremendous declines, leaving leveraged accounts especially at risk of margin calls. The use of securities in an investment account to collateralize…