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

You were most helpful with my FINRA deposition. You are a good lawyer and a good person.

Dan B.

LATEST NEWS AND ARTICLES

July 26, 2024
Kentucky Advisor Sues LPL Financial for Alleged Corporate Raid

A Kentucky advisor, Mark Lamkin, has filed a lawsuit against LPL Financial, claiming the independent broker-dealer orchestrated a corporate raid that resulted in the loss of his firm’s entire book of managed assets.

July 25, 2024
FINRA Plans Fee Increases Amid Rising Costs and Losses

The Financial Industry Regulatory Authority (FINRA) has announced plans to raise fees for its approximately 3,300 broker-dealer member firms. According to AdvisorHub, the self-regulator faces soaring costs, as detailed in its annual report published at the end of June.

July 24, 2024
Raymond James Settles with Oregon Over Excessive Commissions

Raymond James recently settled a case with Oregon's Division of Financial Regulation (“DFR”), agreeing to pay nearly $200,000 over allegations of charging excessive commissions to retail investors.