NEWPORT BEACH, Calif., Aug. 27, 2010 (GLOBE NEWSWIRE) -- The Securities Arbitration Law Firm of Klayman & Toskes, P.A. ("K&T"), www.nasd-law.com, encourages all Securities America customers who purchased Medical Capital Notes to consider their legal options in light of the class action that was filed against Securities America concerning Medical Provider Financial Corp. III, Medical Provider Financial Corp. IV, Medical Provider Funding Corp. V and Medical Provider Funding Corp. VI (collectively referred to as "Medical Capital Notes"). Potential class members who purchased Medical Capital Notes from Securities America should consider whether they should participate in the class action or file an individual securities arbitration claim.
It is alleged that "...Securities America...did not make a reasonable investigation or possess reasonable grounds to believe that the statements contained and incorporated by reference in the [Private Placement Memoranda] at the time of the MedCap Entities' offerings were true and without omissions of material fact and were not misleading. Had...Securities America... exercised reasonable care, they would have known of such omissions." Additionally, the Massachusetts Securities Division filed an Administrative Complaint against Securities America in connection with its sales of Medical Capital Notes. According to Massachusetts Secretary of State Bill Galvin, "Our investigation showed that Securities America ignored their own due diligence analysts and sold these notes to unsophisticated investors without telling them the risks involved." Galvin added, "People invested their life savings, while this dealer hid from them the truth of what they were getting into."
K&T reminds investors of the benefits of filing an individual securities arbitration claim, as opposed to participating in a class action lawsuit. By participating in a class action lawsuit, an investor may only recover a nominal amount. However, if one has experienced significant losses in Medical Capital Notes, it may be more beneficial for them to file an individual securities arbitration claim. In 2003, K&T 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
Investors who purchased Medical Capital Notes from Securities America and sustained significant 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 in Medical Capital Notes, 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.