HOUSTON, Dec. 5, 2008 (GLOBE NEWSWIRE) -- Recently, a class action lawsuit, Case No. 08-cv-09578, has been filed against UBS Financial Services, Inc. (NYSE:UBS) on behalf of investors who purchased Lehman Brothers Principal Protection Notes ("Lehman Principal Protection Notes") from UBS.
In light of the recent filing, the law firm of Shepherd Smith Edwards & Kantas LLP (www.sseklaw.com) has been working with potential class members who purchased Lehman Principal Protection Notes from UBS to determine whether they should participate in the class action or file an individual securities arbitration claim.
According to the Class Action suit, UBS made material misstatements and omissions relating to the Lehman Principal Protection Notes. Moreover, the suit alleges UBS misled investors into believing that these Notes were safe and secure investments. Other allegations include: that UBS offered and sold Lehman Principal Protection Notes as suitable for investors seeking preservation of capital and that the notes were 100% guaranteed. Lehman defaulted on many of these Notes several months ago and with the bankruptcy of Lehman Brothers, investors may stand to lose all or substantially all of their principal investments.
Prior to and since the claim was filed, Shepherd Smith Edwards & Kantas has spoken with dozens UBS customers who sustained losses in Lehman Principal Protection Notes, and is in the process of filing claims on behalf of investors who have suffered losses in the Lehman Principal Protection Notes.
It is the opinion of Shepherd Smith Edwards & Kantas that it is generally for investors to file an individual arbitration claim, as opposed to participating in a class action lawsuit. By participating in a class action lawsuit, an investor may only recover pennies on the dollar. If an investor has suffered sizable losses, an individual claim may provide greater return. Of course there is no guarantee that either method will be "100%" successful. It should also be noted that individual claims cannot be filed in court due to the existence of an arbitration clause in virtually all clients' new account forms.
Similar to a class action, arbitration claims can be done on a contingency basis so that the client need not spend any money to pursue the claim, and depending on the jurisdiction, owe the firm nothing if the claim was unsuccessful.
Shepherd Smith Edwards & Kantas LLP has a team of attorneys, consultants and staff with more than 100 years of combined experience in the securities industry and in securities law. Since 1990, we have represented thousands of investors nationwide to recover losses. We have represented clients in Federal and state courts and in arbitration through the Financial Industry Regulatory Authority (FINRA), the New York Stock Exchange Inc. (NYSE), the American Arbitration Association (AAA) and in private arbitration actions. Collectively, we have represented over 1,000 investors during the last 18 years in negotiation, mediation, arbitration and litigation.