The Securities Law Firm of Tramont Guerra & Nunez, PA Represents Retired Couple in Securities Arbitration Claim Filed Against Merrill Lynch

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The securities arbitration claim filed by a retired couple alleges unsuitable allocation of retirement funds and securities concentration in banking, insurance and financial preferred stocks, through the solicited participation in Initial Public Offerings (IPO) underwritten by Merrill Lynch.

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. 09-04527, against Merrill Lynch which was acquired by Bank of America. The securities arbitration claim filed by a retired couple alleges sales practice violations, including self dealing and fraudulent conduct. This course of conduct led to an unsuitable allocation of retirement funds and securities concentration in banking, insurance and financial preferred stocks, through the solicited participation in Initial Public Offerings (IPO) underwritten by Merrill Lynch. During the financial banking system collapse, the retirement portfolio declined $650,000, while there was no advice given to mitigate the damages, except reassurances to maintain the recommended investment allocations. The securities arbitration claim arises from alleged sales practice rule violations, as set forth by the Financial Industry Regulatory Authority (FINRA).    

According to the securities arbitration claim, Merrill Lynch recommended participation in IPOs with investments in preferred stocks issued by ABN AMRO, Royal Bank of Scotland, ING Groep NV, AEGON, BAC Capital Trust X, and Duke Realty Corp. Merrill Lynch’s system of compensation paid higher commissions to its representatives for the sale of IPO securities which led to the Claimants concentration in these preferred securities. The Claimants did not understand the risks associated with securities concentration and were exposed to uncompensated risk. This arbitration claim seeks to recover losses stemming from the violation of FINRA sales practice rules and regulations. Recommendations of unsuitable investment strategies and/or concentrated investments in the financial sector are both causes of action that form the basis for this securities arbitration claims filed with 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 our website. To speak directly with an attorney, call (800) 578-0137 and ask for Benjamin Fernandez, Esquire.

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