Anyone who was sold one of these notes learned the hard way: in broker-speak the terms “principal protected” and even “100% principal protected” does not really mean your principal is protected. After Lehman Brothers filed for bankruptcy on September 15, 2008, holders of the notes learned that they are just unsecured creditors of the insolvent firm. Click here for a detailed explanation of principal protected notes.
It has been alleged that UBS Financial Services, Inc. sold customers the notes without telling them that the principal protection feature offered no real protection if Lehman Brothers got into financial trouble. Surprisingly, UBS’s analyst who covered the brokerage business described Lehman Brothers as a troubled firm. It has been reported that UBS sold $1 billion of these products to its clients – many of whom were risk-averse retirees.
Happily for customers, claimants have been successful in recovering losses in FINRA arbitration claims against UBS which sold Lehman Brothers Principal Protected Notes.
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 to determine the best course of action. Visit us at www.sbpllplaw.com to obtain additional information.
