NEW YORK, April 9, 2010 (GLOBE NEWSWIRE) -- The Securities Law Firm of Klayman & Toskes, P.A. ("K&T") (http://www.nasd-law.com) announced today that it filed a securities arbitration claim against UBS Financial Services (NYSE:UBS), Case No. 09-06092, seeking recovery of $400,000 for losses sustained in Lehman Brothers 100% Principal Protection Notes ("Lehman Notes") and from over-concentration in preferred financial stock. The claim was filed with FINRA Dispute Resolution.
The Claimant's UBS broker recommended that he invest $200,000 in the Lehman Notes. With the recommendation, the UBS broker advised the Claimant that his investment in the Lehman Notes was absolutely safe, had "no risk" and that at a minimum, he would receive 100% of his investment in the Lehman Notes once they reached maturity. Unfortunately, the UBS broker failed to inform the Claimant of the risks associated with the Lehman Notes, including the credit risk of the borrower, Lehman Brothers. Contrary to UBS' representations regarding the safety of the Lehman Notes, the Notes are now worthless. Had the Claimant been aware of the risks associated with the Lehman Notes, he would not have placed his savings in the Notes.
In addition to the recommendation to invest in the Lehman Notes, the UBS broker advised the Claimant to invest a significant percentage of his account in several preferred financial stocks, including those of Bank of America (NYSE:BAC), Allianz (NYSE:AZ), HSBC (NYSE:HBC), JPMorgan Chase (NYSE:JPM), and Merrill Lynch (NYSE:MER). The UBS broker told the Claimant that preferred stocks were low risk and would pay him a steady dividend. This allocation, however, exposed a significant portion of the Claimant's account to the financial sector. When the financial sector declined in 2008, the Claimant sustained significant damage to his portfolio.
While a class action lawsuit has been filed relating to the Lehman Notes, K&T reminds investors of the benefits of filing an individual arbitration claim, as opposed to participating in a class action lawsuit. By participating in a class action lawsuit, an investor will most likely recover only pennies on the dollar. However, if one has experienced significant investment losses, it may be more beneficial for them to file an individual securities arbitration claim. In 2003, Klayman & Toskes conducted a detailed study of securities arbitration versus class action. The study concluded that investors who file a securities arbitration claim traditionally obtain an overall higher rate of recovery as opposed to participating in a class action lawsuit. To view the full results of the comparison, please visit our web-site: http://www.nasd-law.com/documents/classvr.pdf
Retail and institutional investors who have sustained investment losses can contact K&T to explore their legal rights and options. The attorneys at K&T are dedicated to pursuing claims on behalf of investors who have suffered investment losses. K&T, 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 investment losses of $100,000 or more, 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.