Investors in Lehman Principal-Protected Notes Have an Opportunity to Recoup Their Losses
A Columbia, South Carolina-based Financial Industry Regulatory Authority (FINRA) arbitration panel awarded damages to a South Carolina resident as a result of losses sustained in Lehman Brothers Holdings Inc. principal-protected notes sold to her by UBS. The panel awarded Patricia Flanagan $150,000 in compensatory damages, plus an additional $35,000 designated as costs, plus interest. Ms. Flanagan had requested compensatory damages in the amount of $300,000.00, plus interest, costs, expenses, attorney’s fees, expert witness fees, FINRA fees, and punitive damages. The Panel assessed $6,075.00 of the hearing session fees to Claimant and the same amount to be paid by UBS. No attorney’s fees, expert witness fees or punitive damages were awarded.
The Wall Street Journal reported that this will likely be a closely studied ruling as one of the first involving the Lehman notes to be heard by a Financial Industry Regulation Authority arbitration panel. Arbitration decisions are not legally binding in other cases, however, and arbitrators rarely provide the reasons for their rulings. There are many similar cases pending.
UBS also is being investigated by numerous regulators for its sales practices in selling of these notes, according to the article. The so-called principal-protected notes were speculative derivative securities that were unsuitable for most investors, who were left as unsecured creditors of Lehman Brothers, which filed for bankruptcy last year.
UBS said it is disappointed the arbitration panel in this case awarded the claimant any damages, according to the article.
Most investors who have lost money in Lehman principal-protected notes purchased through UBS, Merrill Lynch or other Wall Street firms appear to have strong claims to recover their losses. J. Boyd Page of Page Perry LLC in Atlanta stated "We are starting to see a lot of these structured product cases. Many of these investments were just not appropriate for Main Street investors and, in most cases, investors were simply not told of the risks despite the broker's obligations to do so."
Page Perry, LLC is an Atlanta-based law firm with over 125 years collective experience representing investors in securities-related litigation and arbitration. While past results are not indicative of future success, Page Perry’s attorneys have recovered over $1,000,000 for clients on more than 30 occasions. Page Perry’s attorneys are actively involved in representing institutional and corporate investors.
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