Jim Eccleston: UBS Clients Should be Cautious About Accepting Class Action Settlement for 100| For Investors

Posted on September 27th, 2013 at 5:13 PM

Purchasers of the 100% Principal Protected Lehman Brothers Notes should note that the class action opt out date is November 18, 2013.  UBS clients who sustained losses in the aforementioned notes will not be able to pursue their own individual FINRA arbitration claims if they do not affirmatively opt out of the class action lawsuit.  According to FINRA Letter of Acceptance, Waiver and Consent No. 2008015443301, the firm made statements and omitted certain facts through communications to some of their financial advisors, which had the effect of misleading certain customers regarding characteristics and risks associated with investing in Lehman PPNs, including material information regarding the product’s “100% Principal Protection” feature.

            If an investor in the Notes does nothing, they will remain a member in the class.  If certain conditions are met and the settlement is effective, the Claims Administrator will send the class members a check for the settlement amount, which most likely will be very small.  Specifically, plaintiffs will receive an average recovery of only $1.34 for Lehman Brothers Structured products with a face value of $10.  Not to mention, the class action council attorney fee currently is 22% of the customer recovery ($26.3 million) plus up to $1 million in additional expenses.

            Eccleston Law Offices can assist investors and their financial advisers weigh each option and determine the best course of action under the particular circumstances.

Related Attorneys: James J. Eccleston

Tags:

Return to Archive

TESTIMONIALS

Previous
Next

Thank you for your professional assistance with this matter. You are very good at what you do.

John T.

LATEST NEWS AND ARTICLES

April 19, 2024
WealthFeed Raises Funds for AI-Driven Lead Generation Tool

WealthFeed leverages proprietary AI technology to collect nine real-time financial data points, including business sales, capital raises, inheritances, and job changes.

April 18, 2024
SEC Fines Target Off-Channel Communications

The Securities and Exchange Commission (SEC) is ramping up its enforcement efforts targeting off-channel communications, particularly text messages, among investment advisory firms.

April 17, 2024
B. Riley Financial Again Delays Filing Audited Results

B. Riley Financial Inc. has encountered a setback in filing its audited results within an extended timeframe, adding to existing pressure amid concerns raised by short sellers regarding its association with a former business partner.