NEW YORK, Oct. 21, 2008 (GLOBE NEWSWIRE) -- The Securities Law Firm of Klayman & Toskes, P.A., www.nasd-law.com, announced today that it is investigating the sale of Lehman Brothers Principal Protected Notes ("Lehman Principal Protected Notes") by full-service brokerage firms to their customers. Also referred to as guaranteed linked notes, these securities were "structured products" that combined fixed income investments with derivatives. What resulted was a product that supposedly provided the protection of fixed income, with the upside of the stock market. Lehman Brothers (OTC:LEHMQ.PK) sold its North American investment banking and capital markets businesses to Barclays (NYSE:BCS) earlier this year. In the deal, Barclays agreed to buy Lehman's operations, along with trading assets valued at $72 billion, and trading liabilities worth $68 billion.
Lehman Principal Protected Notes were marketed by several brokerage firms, including Lehman Brothers, Citigroup (NYSE:C), UBS (NYSE:UBS), Merrill Lynch (NYSE:MER) and Wachovia (NYSE:WB), as conservative investments. Investors looking for income were advised that Lehman Principal Protected Notes would provide preservation of capital, a modest yield, and a slight gain in principal. In a brochure issued by Lehman Brothers, it stated that their "structured notes," which includes Lehman Principal Protected Notes, had "100 percent principal protection" and "uncapped appreciation potential" based upon the gains in the S&P 500 Index. In reality, however, investors of Lehman Principal Protected Notes were subject to a significant amount of risk.
The attorneys at the Law Firm of Klayman & Toskes are dedicated to aggressively pursuing claims on behalf of investors who have suffered significant losses. 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 lost $250,000 or more in Lehman Principal Protected Notes and you wish to discuss your legal options at no obligation, 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.