updated 9/1/2010 11:20:57 AM ET 2010-09-01T15:20:57

HOUSTON, Sept. 1, 2010 (GLOBE NEWSWIRE) -- The Law Firm of Shepherd Smith Edwards & Kantas LLP continues to investigate claims for investors stuck with ARS. Billions in Auction Rate Securities were sold to investors as short term investments, but were actually long term bonds or preferred shares with variable interest rates determined in auctions several times per year. Many investors were not informed that when auctions "fail" they could be stuck with long term investments paying a low interest rate.  

In late 2007, a number of ARS auctions failed, a fact known in the securities industry.   But rather than warn investors, many firms instead unloaded theirs and their prized investors' ARS securities on individual investors.  The problem was so wide-spread that, at the insistence of regulators, many firms bought back these securities.       

Others, including Raymond James chose to fight.  Most claims against securities firms, including those concerning Auction Rate securities, must be decided in arbitration rather than court.  One Texas couple filed an arbitration case against the firm and this week learned that the they had been awarded almost a million dollars.  This is the second such loss by Raymond James in the last month. 

Shepherd Smith Edwards & Kantas LLP has a team of attorneys, consultants and others with more than 100 years of combined experience in the securities industry and in securities law. Since 1990, we have represented thousands of investors nationwide to recover losses.  We have represented clients in Federal and state courts and in arbitration through the Financial Industry Regulatory Authority (FINRA), the New York Stock Exchange Inc. (NYSE), the American Arbitration Association (AAA) and in private arbitration actions. Collectively, we have represented clients in more than 1,000 matters in negotiation, mediation, arbitration and litigation. 

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved


Discussion comments


Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 3.79%
$30K home equity loan FICO 4.99%
$75K home equity loan FICO 4.69%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.83%
Cash Back Cards 17.80%
Rewards Cards 17.18%
Source: Bankrate.com