New York, New York (PRWEB) March 23, 2013
Zamansky & Associates LLC has filed another FINRA arbitration on behalf of a 57 year-old New Jersey woman alleging that her brokerage firm, UBS Financial Services, Inc., wrongly recommended that she purchase $60,000 worth of structured products issued by the now-bankrupt Lehman Brothers Inc. in her individual retirement account. The case is FINRA No. 13-0647.
The Statement of Claim asserts that UBS's senior management hid its true views of Lehman’s financial condition from its brokerage customers. The claim alleges that UBS violated FINRA’s suitability rule by failing to fully and sufficiently disclose the credit risks associated with Lehman Brothers, and the Return Optimization Securities it sold. The claim also alleges that UBS twice halted sales of Lehman notes in response to concerns about Lehman’s credit risk, but failed to disclose those halts to its thousands of retail customers who already held Lehman notes in their accounts.
FINRA arbitration attorney Jacob Zamansky notes that “UBS sold about $1 billion worth of these Lehman notes to its retail customers, we allege failing to disclose what could happen if Lehman defaulted. Many of these customers were very conservative and looking to preserve their assets in a volatile market, but instead were put in these risky Lehman notes.” While Lehman filed for bankruptcy in September 2008, Zamansky believes that UBS brokerage customers can file timely claims if they act promptly.
Zamansky & Associates LLC has successfully represented the former president of the Philadelphia 76ers Pat Croce. The case was Pasquale Croce v.UBS Financial Services, Inc., FINRA No. 10-00362. As reported by Reuters, an arbitration panel found UBS liable for $2 million in damages, less $480,000 -- the residuary value of the note -- and interest from September 2008. http://www.reuters.com/article/2011/06/13/ubs-idUSL3E7HD2SS20110613
What Investors Can Do
If you would like to have your brokerage accounts reviewed or discuss your legal rights, you may, without obligation or cost to you, email jake(at)zamansky(dot)com or call the law firm at (212) 742-1414.
About Zamansky & Associates LLC
Zamansky & Associates LLC is one of the leading law firms specializing in securities fraud, FINRA arbitration and class action litigation. Our FINRA attorneys represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover losses.
Zamansky & Associates, LLC
50 Broadway - 32nd Floor
New York, NY 10004
Jake Zamansky, 212-742-1414