BEVERLY HILLS, Calif., July 14, 2010 (GLOBE NEWSWIRE) -- The following was released today by Aidikoff, Uhl & Bakhtiari (www.securitiesarbitration.com).
Aidikoff, Uhl & Bakhtiari announces the filing of additional FINRA securities arbitrations against Securities America. To date the law firm has been contacted by hundreds of investors doing business with Securities America, QA3 Financial, Capital West and other brokerage firms with losses in excess of $50 million.
A regulatory action filed by the Commonwealth of Massachusetts against Securities America provides further evidence that investors were misled by the brokerage firm in connection with the sale of Medical Capital promissory notes. The Massachusetts complaint is based on Securities America's "material omissions and misleading statements made" in the course of the sale of approximately $697 million of promissory notes to Medical Capital investors.
The Massachusetts complaint states "…all material risks and information regarding MC Notes were not disclosed to investors. These risks were known to [Securities America]. Year after year, the due diligence analyst, retained by [Securities America] to conduct a review of the various Medical Capital offerings, specifically requested and at many times pleaded that investors be informed of certain heightened risks."
At the deposition taken by Massachusetts of Securities America's Chairman of Due Diligence and Head of Sales, Thomas Cross, it is reported that Mr. Cross was asked why certain information recommended to be given to the investors by the due diligence analyst was not provided. Mr. Cross responded that giving such information would be a "bad thing."
The Massachusetts investigation also uncovered that "top executives" at Securities America enjoyed vacation trips such as golfing at Pebble Beach and stays at Las Vegas resorts which were paid for by Medical Capital.
"Investors should be aware of a pending class action," said attorney David S. Harrison. "The class case may have certain pitfalls that investors should be aware of before selecting an attorney. Most individual investors will fare better by pursuing an individual FINRA arbitration claim."
Important Facts to Consider Prior to Joining a Medical Capital Class Action
- Many investors may have viable claims based on the investments' unsuitability. Because a suitability claim is dependent on an individual's circumstances, this claim cannot be prosecuted on a class wide basis.
- Investors with significant losses are likely to recover only pennies on the dollar through a class action.
- Class actions sometimes create hurdles to recovery for individual investors including depositions and motion practice which are generally not permitted in securities arbitrations decided before FINRA. The FINRA arbitration process can usually be completed in a much shorter period of time, often 15 months. Recovery through a class action may take several years.
"Often the most important choice an investor makes following a disaster like Medical Capital is the remedy they will pursue to vindicate their rights," said attorney Ryan K. Bakhtiari. "Investors should carefully consider their options."
Aidikoff, Uhl & Bakhtiari represents retail and institutional investors around the world in securities arbitration and litigation matters. Attorneys for the firm have appeared before the Financial Industry Regulatory Authority (FINRA) and in numerous state and federal courts to resolve financial disputes between customers, banks, brokerage firms and other financial institutions. More information is available at www.securitiesarbitration.com or to discuss your options please contact an attorney below.