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 (“Lehman Notes”). The Lehman Notes were represented by UBS to be safe, “no risk” investments, and that, at a minimum, investors would receive 100% of their investment in the Lehman Notes once they reached maturity. Unfortunately, UBS failed to inform its customers of the risks associated with the Lehman Notes, including the credit risk of the borrower, Lehman Brothers. In reality, the Notes were just unsecured Lehman debt. Contrary to UBS’ representations regarding the safety of the Lehman Notes, the Notes are now worthless. Apart from Lehman Brothers, UBS was the largest seller of the Lehman Notes.
In 2009, The New Hampshire Bureau of Securities Regulation filed a Cease and Desist Order against UBS alleging “unfair sales practices…unsatisfactory supervisory procedures and for recommending unsuitable investments,” concerning the Lehman Notes. The State of Missouri is also now looking into UBS and its sales of the Lehman Notes. Moreover, UBS stated in a quarterly financial report that it was named in class-action suits and “numerous” arbitrations, and that it had received inquiries from “state regulators and FINRA.” Even the SEC has started to examine how banks described the risks associated with structured note offerings and whether “principal protection” was deceptive.
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: https://klaymantoskes.com/documents/classvr.pdf
Investors who have sustained losses in the Lehman Notes can contact KlaymanToskes to explore their legal rights and options.