According to a recent article from Reuters, a Financial Industry Regulatory Authority (FINRA) arbitration panel has ruled in favor of an investor who invested in Auction Rate Securities with Oppenheimer & Co. before that market failed in 2008. The panel reportedly ruled that the investor “was entitled to “recission of $5.98 million in New Jersey Turnpike auction rate securities that she bought in 2007…” In addition to repurchasing the nearly $6 million dollars’ worth of ARS, Oppenheimer must also cover legal fees in excess of $100,000. In the claim filed against Oppenheimer & Co., in addition to other allegations, they were accused of breach of fiduciary duty and negligence.
Reuters described that “Auction rate securities were sold as highly liquid short-term instruments similar to money-market funds, but with slightly higher returns,” but as a result of a massive market failure in 2008, “…large investment banks that ran the auctions ran into liquidity crunches, [and] thousands of investors were left with securities that could not be sold.
The freeze in the auction rate securities market caused major problems for investors and brokerage firms alike. Litigation followed and, as evidenced by this recent panel decision, continues. There may still be time for investors who suffered investment losses as a result of the purchase of auction rate securities (ARS) to pursue their investment losses through a FINRA arbitration claim.
The White Law Group may be able to assist investors damaged due to the purchase of auction rate securities in pursuing recovery of losses through the FINRA dispute resolution process. The White Law Group is nearly exclusively dedicated to FINRA arbitration proceedings on behalf of investors.
If you invested in auction rate securities (ARS) prior to the market failure in 2008 with Oppenheimer & Co. or another firm, suffered losses, and would like to speak to a securities attorney about your potential to recovery your losses through a FINRA arbitration claim please call our Chicago office at 312-238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.