Lehman Notes

Napoli Bern Ripka LLP is currently seeking clients who have incurred losses in investments in Lehman Brothers notes. In December, a small investor was awarded $200,000 after a Financial Industry Regulation Authority (FINRA) panel decided her UBS AG broker inappropriately sold her risky Lehman Brothers Holdings Inc. principal-protected notes. The case is one of the first involving the Lehman notes to be heard by FINRA. While the arbitration ruling won’t set a precedent, it could indicate how rulings on similar cases will play out.

The case, submitted for arbitration a year ago, was brought against UBS Financial Services, a unit of UBS, which is also being investigated by numerous regulators for alleged issues around its selling of these notes. The broker bought two notes for his client: a $225,000 guaranteed principal protection note and a $75,000 return optimization note. The claimant filed the arbitration claim accusing UBS of recommending structured products that are not suitable for “unsophisticated investors.” The FINRA panel determined that the claimant should be compensated $150,000 plus interest and attorney fees on the principal protected note; there was no compensation for the $75,000 note.

The attorneys at Napoli Bern Ripka have experience handling hundreds, if not thousands, of similar cases involving investment losses due to unsuitable investment recommendations and misrepresentations. If you have incurred losses in Lehman Brothers notes, whether through recommendations by UBS or any other securities firm, please do not hesitate to contact us today to discuss your potential claim.