WEST PALM BEACH, Fla., March 31, 2009 (GLOBE NEWSWIRE) -- The law offices of McCabe Rabin, P.A. and Stein, Stein & Pinsky, P.A. have been retained by Florida investors to bring claims arising from alleged misrepresentations and omissions by The GMS Group regarding the nature and safety of Main Street Natural Gas, Inc.'s Series 2008A Gas Project Revenue Bonds underwritten by Lehman Brothers ("Main Street Natural Gas 2008A Bonds" or the "Bonds"). The firms are also investigating potential claims against FMS, Citigroup/Smith Barney and others.
The law firms have learned that investors may have been told by their brokers at GMS, FMS and Citigroup/Smith Barney that Main Street Natural Gas 2008A Bonds were traditional municipal bonds backed by the full faith and credit of a municipality and therefore "safe." The investors may have also been told that the Bonds were guaranteed by Lehman. In fact, the Bonds were issued in connection with a complex commodity transaction. In addition, neither Lehman nor any municipality was obligated to make interest or principal payments on the Bonds -- which are now worth a small fraction of their initial value.
A lead attorney investigating the sales of the Bonds, Ryon M. McCabe, said, "The investors who purchased the Bonds were seeking a safe, tax-free income-producing investment that was backed by a municipality. While the Bonds were tax-free, it appears that they had little else in common with traditional municipal bonds. The firms that sold the Bonds should have disclosed the true nature and risk of the Bonds to their conservative municipal bond investors."
The law firms are available to speak with investors who purchased the Bonds.