PALM BEACH, Fla., April 13, 2011 (GLOBE NEWSWIRE) -- The Law Firm of Stein & Stein, P.A. www.steinsteinlaw.com, is currently investigating the following claims on behalf of investors:
(1) Claims on behalf of investors with accounts at UBS who purchased Lehman Brothers 100% Principal Protection Notes (PPNs) in the months before Lehman filed for bankruptcy. The Financial Industry Regulatory Authority (FINRA) has censured and fined UBS $2.5 million for making statements and omissions that had the effect of misleading certain customers regarding the characteristics and risks of the Lehman 100% Principal Protection Notes.
FINRA found that many UBS advisers did not understand the complexity of the Lehman Brothers 100% Principal Protection Notes (PPNs) they were selling which resulted in their failure to disclose information regarding Lehman's credit risk and its effect on potential losses. FINRA concluded that this product was unsuitable for investors with a conservative or moderate risk profile. Moreover, these particular investors would be even more inclined to rely on UBS' representations about the "principal protection" aspect of the Lehman PPNs due to their aversion to risk based on their investment objectives.
(2) Claims on behalf of investors invested in Mat/ATSA funds through Citigroup or Smith Barney.
The primary investment complained of was a leveraged municipal arbitrage hedge fund known as Mat/ASTA launched by Citigroup Global Markets, Inc. and sold through both Smith Barney and Citigroup Private Bank, part of Citigroup's Global Wealth Management Group. These funds were marketed exclusively to high net worth clients of the firm between 2002 and 2007. They were represented as being Fixed Income Alternatives with a slightly higher return than a portfolio of municipal bonds with little added risk. Instead, these funds imploded in February 2008 causing catastrophic losses to investors.
If you or a family member purchased a Lehman Brothers 100% Principal Protected Note from UBS or a Mat/ASTA fund from Citigroup or Smith Barney and wish to discuss your legal rights, please call me directly for a confidential and no obligation consultation at 1-888-222-4124.
The attorneys at Stein & Stein, P.A. have over 43 years of combined experience representing investors nationwide in securities matters. More about the firm is available on its website at: www.steinsteinlaw.com