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Government Settlements Left Out Corporate Investors
We Will Help you Recover your Money on a Contingency Basis
Auction Rate Securities ("ARS"), a derivative product whose value is derived from an underlying security such as preferred stock, bonds or student loans, had interest rates that were set at periodic auctions. These securities were marketed as cash equivalents that provided a safe, liquid investment with a good rate of return. Sellers claimed ARS were essentially cash equivalents.
Investment firms nationwide had capitalized on the ARS market with tactics like aggressive campaigns to sell ARS shares to investors - even when ARS securities did not fit into an investor's financial goals. As part of their strategy they emphasized the benefits of ARS securities such as safety and liquidity while downplaying or omitting entirely, information about the potential risks.
The collapse of the market for auction rate securities left investors who thought they had a safe, liquid investment with illiquid securities. Since the collapse in February 2008 there have been government settlements with sellers of "ARS"; but these settlements primarily were with small investors, leaving corporate and institutional investors to fend for themselves.
Read what was recently published concerning New York's Attorney General Mario Cuomo's retrieval of investors money:
Cuomo has already had some successes in retrieving money from some of the biggest Wall Street banks.
Over the Summer of 2008, in a separate investigation of major Wall Street and foreign banks, Cuomo obtained settlements in which over $50 billion was paid back to investors in auction-rate securities. Those who received payments were "retail investors"-consisting of individuals, charities and non-profit organizations, and small to medium-sized businesses. The first round of settlements involved UBS and Citigroup. In August, Cuomo announced investigations into JP Morgan Chase, Morgan Stanley, and Wachovia, for misrepresenting these securities as safe, sound investments, when in fact the banks knew that the securities faced increasing liquidity risks. Later in August, Cuomo announced settlements with Goldman Sachs, Deutsche Bank, and Merrill Lynch.
Additionally, in October, Cuomo obtained settlements with BoA and the Royal Bank of Canada. That same month, Cuomo announced a $6.5 million settlement with David Aufhauser, former General Counsel of UBS, for insider trading; Aufhauser dumped his personal holdings of auction-rate securities in December 2007, after learning about the collapsing auction-rate securities market. This was while UBS was still marketing the securities to retail investors as safe investments.
Corporate Investors Beware
Are you left stranded with Auction Rate Securities (ARS)? On December 31, 2008 the Securities and Exchange Commission (SEC) announced they would not suspend "Fair Value (FAS 157)" accounting rules. What does this mean to you?
However, you can stand up for your shareholders and bring legal action. You were promised these securities were safe, liquid investments and you were lied to by brokerages that are now using the justification, "you never should have trusted us". Now you are left with shockingly devalued securities and you must answer to your investors. Like the smaller investors, you have legal recourse. Contact a Securities Attorney at Charlip Law Group, LC for competent advice on Auction Rate Securities.
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As an investor you have the right to be informed about the investments you make. Your rights may have been violated by the over-aggressive strategies of investment firms. Let our Securities Litigation and Arbitration Attorneys at Charlip Law Group, LC review your claim in order to decide which is the best legal remedy to pursue. We will take your case on a contingency basis and seek to recover not only your original investment; but consequential damages as well.
At Charlip Law Group, LC our attorneys will represent your matters with the full consideration and respect you deserve. The lawyers at our firm bring many years of training and experience to the practice of law. Our multi-lingual staff will deal with your issues promptly. We are conveniently located in Broward County. Our South Florida location allows us to serve our clients in Miami-Dade, Broward and Palm Beach Counties; throughout Florida and the United States. Contact Charlip Law Group, LC at our Hollywood, Florida offices toll-free at 1-800-773-1955 or 954-921-2131. You can send us a confidential email at
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