Coral Gables, FL (PRWEB) November 15, 2011
The Securities Law Firm of Tramont Guerra & Nunez, P.A. (TGN) investigates investor claims, in light of the bankruptcy filing by MF Global Holdings Ltd. (MF Global), for MF Global 6.25% Senior Notes due 2016 issued through Offering documents including registrations statements and prospectus. On November 3, 2011, MF Global reported in a SEC filing Form 8-K that the company, “filed a voluntary petition for relief under Chapter 11 of Title 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York.” The bankruptcy petition Case No. 11-15059 (MG) was filed three months after the MF Global 6.25% Senior Notes were issued to the investing public. According to the prospectus, the Underwriters of the MF Global 6.25% Senior Notes included the sole book-running manager, Jefferies, and co-managers, BofA Merrill Lynch, BMO Capital Markets, US Bancorp, Lebenthal & Co., Commerzbank and Sandler O’Neill + Partners, LP. According to TGN, the Underwriters of MF Global 6.25% Senior Notes offered to the investing public have an obligation to conduct a due diligence investigation concerning facts related to the Notes. 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. Within three months of the public offering for the MF Global 6.25% Senior Notes, MF Global filed a petition for Chapter 11 bankruptcy protection. In light of the bankruptcy filing, TGN urges investors who acquired MF Global 6.25% Senior Notes through full-service brokerage firms, to consider what recourse is available to recover their investment losses.
According to TGN, the Underwriters who managed the MF Global 6.25% Senior Notes Offering solicited their clients to invest in MF Global Notes and represented the Notes as a safe, stable source of income for risk adverse investors. 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 who act as Underwriters for MF Global 6.25% Senior Notes are required to perform adequate due diligence concerning the risks associated with the Notes they underwrite before they recommend them for investment in client accounts. Recommendations which result in unsuitable investment advice and/or a failure to conduct adequate due diligence which result in misrepresentations or omissions of material facts 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 the Financial Industry Regulatory Authority, 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.
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