Coral Gables, Florida (PRWEB) September 27, 2011
The Securities Law Firm of Tramont Guerra & Nunez, P.A. (TGN) provides notice to all investors concerning the Bank of America class action lawsuit (Case No. 11-CV-06678) filed September 23, 2011 in the United States District Court of the Southern District of New York for the class period from February 25, 2011 to August 5, 2011. According to the class action lawsuit, “During the class period, the defendants misled investors by failing to disclose that BofA potentially owes American International Group (“AIG”) over $10 billion.” The class action contends that, “Throughout the class period, defendants repeatedly informed investors about the claims of other entities for RMBS losses but not about the massive losses suffered by AIG.” The lawsuit further asserts, “Subsequently, on August 8, 2011, AIG filed suit against BofA in New York state court seeking to recover the losses it had suffered from the RMBS that BofA, Countrywide, and Merrill Lynch had sold it between 2005 and 2007. As a result, the price of BofA’s common stock dropped from a closing price of $8.17 per share on August 5, 2011 to $6.51 per share on August 8, 2011, a decline of more than 20% in one trading day.” TGN urges investors who acquired Bank of America 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 regulating organization with sales practice rules and regulations that govern the securities industry’s conduct and safeguard the investing public. Furthermore, an individual securities arbitration lawsuit may allow investors to claim larger losses in Bank of America stock based on higher market values that prevailed prior to the class period.
According to TGN, many investors in Bank of America 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 securities 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.