Did you lose money investing in Principal Protected Notes or Reverse Convertibles?
Brokers and their brokerage firms are required to make only suitable investment recommendations to their customers. Unfortunately, over the last several years many brokers and financial advisors failed to disclose to their customers the substantial risks of investing in Principal Protected Notes and Reverse Convertibles. The brokers wanted to earn high fees typically ranging from 1 percent to 6 percent. Many of these investors lost their irreplaceable retirement savings. The issuers of these notes were large financial institutions such as JP Morgan, Citigroup, Morgan Stanley, Barclays , Royal Bank of Scotland, and ABN Ambro Holding.
For example, UBS sold its customers Principal Protected Notes. These notes were often linked to an index or stock and were supposed to provide protection of principal regardless of the performance of the underlying investment. Financial advisors at UBS who sold these investments often failed to advise their customers that if Lehman Brothers failed then they would become unsecured creditors of Lehman Brothers. In other words, UBS failed to warn investors that they did not hold the underlying securities in any way and their investment was merely an unsecured loan to Lehman Brothers which as of late 2007 was an overleveraged firm that was on the verge of bankruptcy.
Did your Broker Fail to Disclose:
- These investments carry all the risks that notes ordinarily entail, plus the risks of the underlying stock.
- These investments are highly illiquid and even if there is a secondary market the resale values are generally poor.
- The promise to make interest payments and re-pay principal are only as good as the financial stability of the issuer.
If you lost a substantial amount of your savings investing in Principal Protected Notes, please call us so we can assist you in recovering your investment losses through securities arbitration.
There is no fee to review a potential claim. We will spend whatever time is necessary, at our expense, to analyze your case and determine whether we can recover your investment losses.
To initiate our review of your case, please fill out this form below: All Information will be kept strictly confidential and will never be shared with any other party.
