Coral Gables, Florida (PRWEB) December 22, 2011
The Securities Law Firm of Tramont Guerra & Nunez, P.A. (TGN) provides notice to all investors concerning the Bank of New York Mellon Corporation (BNY Mellon) class action lawsuit (Case No. 11-CV-09175) filed December 14, 2011 in the United States District Court of the Southern District of New York for the class period from February 28, 2008 to August 11, 2011. The Underwriter Defendants named in the class action include Barclays, BNY Mellon Capital, Citigroup, Goldman Sachs, Merrill Lynch, Morgan Stanley and UBS. According to the class action lawsuit, “The Underwriter Defendants underwrote BNY Mellon’s May 11, 2009 and/or June 3, 2010 common stock offering which were conducted pursuant to materially false and misleading offering materials and are charged with violations of the Securities Act in their capacity as underwriters for such offering.” The class action alleges, “Throughout the Class Period, defendants concealed and failed to disclose material adverse facts about the Company’s financial well-being, business relationships, and prospects.” The class action lawsuit claims, “As a result of the defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s common stock following disclosures of BNY Mellon’s previously undisclosed FX trading scheme, Plaintiff and Class Members suffered damages.” According to TGN, the Underwriters of BNY Mellon common stock offerings to the investing public have an obligation to conduct a due diligence investigation concerning facts related to the public offerings. The Securities Act of 1933, Sections 11 and 12(a)(2), subject Underwriters to potential liability for the failure to ensure the accuracy of information provided in registration statements and prospectuses. TGN urges investors who acquired BNY Mellon stock through employment, inheritance or as a personal investment, which resulted in a concentrated stock position held with full-service brokerage firms, to consider what recourse is available to recover their investment losses. The Financial Industry Regulatory Authority, (FINRA) is a self regulatory organization with sales practice rules and regulations that govern the securities industry’s conduct and safeguard the investing public. Furthermore, an individual securities arbitration claim through FINRA may allow investors to claim larger losses in BNY Mellon Corp stock based on higher market values that prevailed prior to the class period.
According to TGN, many investors in BNY Mellon who held company stock with full-service brokerage firms were not educated about the risks associated with maintaining a concentrated stock position. Full-service brokerage firms are obligated to give, and investors are entitled to rely upon, brokerage firms for competent, suitable investment advice for securities held in customer accounts. Brokerage firms are required to supervise the activities in brokerage accounts, losses may be attributed to the failure to adequately supervise the stockbroker and the brokerage account. Recommendations which result in unsuitable investment advice and/or failure to recommend appropriate risk management strategies for unprotected concentrated stock positions are both causes of action that may be available to investors against their full-service brokerage firm in an individual securities arbitration claim filed with FINRA.
The Securities Law Firm of Tramont Guerra & Nunez, PA, is a nationally recognized, Martindale Hubbell “AV” rated secrities law firm. To request a confidential consultation from a TGN attorney to determine whether you have a viable individual securities arbitration claim for investment losses that exceed $250,000 from a full service brokerage account, contact us on our website. To speak directly with an attorney, call (800) 578-0137 and ask for David Chacin, Esquire.