October 18, 2011 Comments (0) Blog, Securities Fraud

Recovery of Lehman Brothers Structured Products Investment Losses through FINRA Arbitration

(Last Updated On: July 17, 2015)

Have you suffered losses due to your investment in a Lehman Brother Structured Products, including the 100% Principal-Protection Notes (PPNs), that you purchased from UBS Financial Services? If so, The White Law Group may be able to help you recover your investment losses through FINRA arbitration.

Lehman brother’s submission to bankruptcy in 2008 sent shockwaves through the financial industry and drew significant attention to the risks associated with structured securities products. Since these events there have been 2 important developments for investors.

First, it appears that Lehman’s bankruptcy proceeding will be an avenue for investors to recover some of their investment.  It appears, though, that investors can only expect to get a small percentage of their total investment in the Lehman structured products, including the 100% Principal-Protection Notes (PPNs), from the Lehman bankruptcy.

Second, investors may be able to recover a large portion of their investment by pursuing claims against the brokerage firm that recommended the Lehman investments.  UBS, for one, has struggled to defend itself against allegations that it was culpable for losses investors suffered in the principal protected notes and numerous FINRA arbitrations have been filed alleging that UBS failed to adequately represent the risks of these Lehman structured products.  FINRA also issued heavy fines against UBS in April with regards to the sale of the PPN’s (http://www.whitesecuritieslaw.com/2011/08/03/finra-fines-ubs-over-lehman-brothers-principal-protected-notes/).

There is still time to file FINRA arbitration against UBS Financial Services for the recovery of investment losses in the Lehman Brothers structured products. The White Law Group’s securities practice is dedicated to FINRA arbitration and has the experience to help guide you through the recovery process.

The SEC has also chimed in recently and reported the results of a multiyear investigation into the sale of structured products to retail investors. This investigation appears to have been undertaken at least in part due to Lehman Brothers’ bankruptcy. The SEC report found that some firms may not be prepared to offer these structures products to retail investors, the deficiencies found in the entities the SEC examined, “include evidence of broker-dealers recommending unsuitable SSPs to retail investors and engaging in secondary market purchases from and sales to retail investors at disadvantageous prices. [Additionally], Various examinations of the broker-dealers affiliated with the issuer, as well as the other retail broker-dealers, have identified deficiencies in the firms supervisory and compliance structures as they relate to retail SSPs, including a tendency not to recognize SSPs as a distinct product class with special supervisory challenges – including surveillance for sales practice abuses as well as the need for specialized training for sales and supervisory personnel.”

The risks associated with structured products are now becoming clearer to investors, but investors who invested in the Lehman Brothers 100% Principal-Protection Notes (PPNs) may not have understood those risks and as such brokerage firms, like UBS, may be culpable under FINRA rules.

If you have suffered investment losses due to the purchase of a Lehman Brothers structured product through a FINRA registered broker-dealer and would like to speak to a securities attorney about your potential to recover losses please call our Chicago office at 312-238-9650.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.

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