NEW YORK, July 24, 2008 (PRIME NEWSWIRE) -- The Securities Law Firm of Klayman & Toskes, P.A. (http://www.nasd-law.com) said today that New York Attorney General Andrew Cuomo filed a lawsuit against UBS Securities, LLC and UBS Financial Services, Inc. (collectively referred to as "UBS"), alleging that the brokerage giant misrepresented Auction Rate Securities to be liquid and safe investments. These misrepresentations allegedly occurred before the Auction Rate Securities market failed in February of 2008.
During a press conference held earlier today, Attorney General Cuomo said, "Not only is UBS guilty of committing a flagrant breach of trust between the bank and its customers, its top executives jumped ship as soon as the securities market started to collapse, leaving thousands of customers holding the bag." Mr. Cuomo added that his investigation showed that while UBS executives allegedly sold $21 million in personal holdings of Auction Rate Securities just as the market started to collapse, the brokerage firm continued to sell the Auction Rate Securities to its customers.
Presently, Klayman & Toskes continues to file claims against major Wall Street brokerage firms regarding unsuitable recommendations in Auction Rate Securities. In light of the fact that both Massachusetts and New York have now filed lawsuits against UBS in connection with its sales of auction rate securities, Klayman & Toskes expects claims against UBS to increase substantially.
Attorney Lawrence Klayman of Klayman & Toskes stated, "The fact that the regulators are becoming more involved in the investigation regarding Auction Rate Securities further solidifies and substantiates what we have alleged in the claims we have filed on behalf of our clients." Since the Auction Rate Securities crisis began in February of 2008, Klayman & Toskes has received numerous inquiries from investors who have claimed that UBS advised them that Auction Rate Securities were "Cash Alternatives," and went so far as to list Auction Rate Securities in the "Cash Alternatives" section of investors' monthly UBS account statements. In that regard, investors believed that their Auction Rate Securities carried little to no risk.
Klayman & Toskes continues to investigate the sales practices of several Wall Street brokerage firms in connection with their marketing of Auction Rate Securities, including UBS. Klayman & Toskes' investigation is focused on investors who purchased Auction Rate Securities as well as individuals who have information regarding the sales practices/marketing of Auction Rate Securities by Wall Street brokerage firms.
The attorneys at the Law Firm of Klayman & Toskes are dedicated to aggressively pursuing claims on behalf of investors who purchased Auction Rate Securities from UBS. Klayman & Toskes, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms. If you wish to discuss this announcement or have information relevant to our claims, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at http://www.nasd-law.com.