NEW YORK, Aug. 1, 2011 (GLOBE NEWSWIRE) -- The Securities Arbitration Law Firm of Klayman & Toskes ("K&T"), www.nasd-law.com, announced today that it filed a securities arbitration claim on behalf of two retirees against Bear Stearns n/k/a JPMorgan (NYSE:JPM). The claim seeks recovery of $2.37 million. The suit was filed with the Financial Industry Regulatory Authority's ("FINRA") Office of Dispute Resolution. According to the Claim, the case is about unsuitable recommendations and the mismanagement of the accounts of two retirees who invested a substantial portion of their net worth with Bear Stearns n/k/a JPMorgan so that the firm and its financial advisor could prudently invest their assets during their retirement years. Prior to establishing accounts with the advisor, the Claimants did not have a lot of experience investing in the stock market. As a result, they placed complete trust and confidence in their advisor to provide sound advice.
Unfortunately, with no apparent rationale or economic justification, their financial advisor engaged in a series of risky put options transactions at a time when the securities markets were declining. Neither Claimant fully understood the risks which accompanied the advisor's recommended options strategy. Additionally, these same risks were disregarded by Bear Stearns n/k/a JPMorgan Management, as at no point in time did a supervisor contact the Claimants to discuss the options strategy employed in their accounts or the risks to which their portfolios were exposed.
Further, the advisor made the unsuitable recommendation that the Claimants invest in the Bear Stearns Access Fund VI, L.P., sponsored by The Blackstone Group, L.P., an alternative investment manager. Initially, they were advised to each place $100,000 into the product with the commitment of investing $250,000. The Claimants were advised that the additional capital required to be invested would be generated by their investments. However, as a result of capital calls, they were required to invest an additional $150,000 of their own money into the Fund. As such, they are seeking rescission of their investment in the Bear Stearns Access Fund.
Retail and institutional investors who have sustained investment losses as a result of unsuitable advice, fraud or misrepresentations and omissions 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