Securities Arbitration Claim Filed Against Wells Fargo Advisors, LLC by The Securities Law Firm of Tramont Guerra & Núñez, PA

Share Article

The Law Firm of Tramont Guerra & Núñez, PA filed a securities arbitration claim against Wells Fargo Advisors, LLC. The sales practice violations include unsuitable investment advice, securities concentration, and a failure to conduct adequate due diligence as a member of the underwriting syndication.

The Securities Law Firm of Tramont Guerra & Núñez, PA (TGN) announces the recent filing of a securities arbitration claim with the Financial Industry Regulatory Authority (FINRA), Case No. 09-04850, against Wells Fargo Advisors, LLC (NYSE:WFC), successor in interest to Wachovia Securities. The securities arbitration claim filed alleges sales practice violations, including securities concentration and the failure to conduct adequate due diligence as a member of the underwriting syndication. This course of conduct led to a solicited participation in Initial Public Offerings (IPO) underwritten by Wachovia which resulted in an unsuitable concentration in bank preferred stocks which included Citigroup Non-Cumulative 8.125% Preferred, Series AA issued by Citigroup, Inc. (NYSE: C). The securities arbitration claim arises from sales practice rule violations, as set forth by the Financial Industry Regulatory Authority (FINRA).    

Many investors in Citigroup Preferred Series AA, E, F and T stock were allegedly advised that the securities were suitable for current income investment objectives. Most of the preferred shares were allegedly issued during Citigroup’s efforts to raise capital as the mortgage-related losses mounted. Furthermore, investors allege the preferred dividend rate, the assurances of Citigroup’s financial strength, and strong market position were additional factors given for the investment. Soon thereafter, Citigroup suspended the payment of the dividend which left investors in dismay. In July 2009, Citigroup completed an offer and exchange program of Citigroup publicly held convertible and non-convertible preferred and trust preferred securities, for newly issued common stock. The exchange program resulted in $20.3 billion in publicly held preferred stock which was exchanged for common stock at a price of $3.25 per share. TGN is currently investigating the recent developments and continues to file claims on behalf of investors who invested in Citigroup. Investors should consider whether the losses incurred were the result of sales practice violations of the securities industry rules and regulations as promulgated by the FINRA.

The Securities Law Firm of Tramont Guerra & Núñez, PA, is a nationally recognized, Martindale Hubbell “AV” rated securities law firm. To request a confidential consultation from a TGN attorney to assist you in determining whether you have a viable individual claim for investment losses that exceed $100,000 from a full service brokerage account, contact us on stock market loss lawyer. To speak directly with an attorney, call (800) 578-0137 and ask for Ben Fernandez, Esquire.

Destination URL:


Share article on social media or email:

View article via:

Pdf Print

Contact Author

Ben Fernandez
Visit website