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


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Thank you so very much for your guidance, patience, and expertise.

Beth and Steve K.


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