Smiley Bishop & Porter LLP has represented clients with significant losses resulting from investments in Auction Rate Securities (ARS). These securities were sold by virtually every major Wall Street firm and were marketed as a highly liquid, safe investment equivalent to CDs or money markets, but with a higher interest rate.
In reality, the auction market was not nearly as safe or liquid as promised and auctions failed, leaving investors holding illiquid debt instruments. Brokerage firms marketed ARS as secure and liquid even after the Securities and Exchange Commission found, after a two year investigation, that Bear Stearns, Citigroup, Goldman Sachs, Deutsche Bank, E-Trade, Piper Jaffray, Raymond James, RBC Dain Rauscher, TD Ameritrade, Lehman Brothers, Merrill Lynch, Morgan Stanley, Banc of America, Morgan Keegan, SunTrust, UBS, Wells Fargo, Oppenheimer, Wachovia, and others had engaged in multiple violations of the securities law in connection with ARS auctions. For a more detailed explanation of Auction Rate Securities click here.
If you believe you have suffered losses because of this product, please contact Smiley Bishop & Porter LLP to discuss your rights at 770-829-3850 or toll-free (800) 697-4514. Smiley Bishop & Porter LLP represents individual and institutional investors in securities arbitration and litigation. The firm focuses on cases involving defrauded investors, suitability claims, and mismarketeted investment products. Smiley Bishop & Porter LLP is available for a free initial consultation. Please visit us at www.sbpllplaw.com to obtain additional information.