updated 3/21/2011 3:46:59 PM ET 2011-03-21T19:46:59

NEWPORT BEACH, Calif., March 21, 2011 (GLOBE NEWSWIRE) -- The Securities Arbitration Law Firm of Klayman & Toskes, P.A. ("K&T"), www.nasd-law.com , encourages all Securities America customers who are eligible to participate in the Medical Capital class action to consider all of their legal options in light of the recent ruling made by U.S. District Court Judge Royal Furgeson rejecting the preliminary settlement of the class action. Specifically, Judge Furgeson ruled that securities arbitration claims can proceed against Securities America instead of being grouped together with the class action. Presently, K&T is handling securities arbitration claims against Securities America on behalf of investors who sustained investment losses in Medical Capital Notes.

Judge Furgeson's ruling came in response to claims made by Securities America that allowing arbitration claims to go forward could severely impact the financial condition of the brokerage firm. This argument, however, does not take into account the deep pockets of Securities America's parent company, Ameriprise Financial (NYSE:AMP), and the capital it has available to help pay out on settlements and Awards. Further, it denies Securities America customers of their contractual right to opt out of the class action and file an individual arbitration claim. According to Lawrence L. Klayman of Klayman & Toskes, "We have consistently said that investors who lost more than $100,000 in their brokerage account should pursue an individual arbitration claim rather than participate in a class action." This is supported by a recent FINRA Award that was rendered against Securities America in December 2010. In the matter of Wayman v. Securities America, et al., FINRA Case No. 10-00012, the Panel awarded the Claimant $734,118 for losses sustained in Medical Capital Notes. Additionally, the Panel held Securities America responsible for $250,000 in punitive damages, $111,465 in attorneys' fees, and almost $60,000 in costs.

K&T reminds investors of the benefits of filing an individual securities arbitration claim, as opposed to participating in a class action lawsuit. By participating in a class action lawsuit, an investor may only recover a nominal amount. However, if one has experienced significant losses in Medical Capital Notes, it may be more beneficial for them to file an individual securities arbitration claim. In 2003, Klayman & Toskes conducted a detailed study of securities arbitration versus class action.  The study concluded that investors who file a securities arbitration claim traditionally obtain an overall higher rate of recovery as opposed to participating in a class action lawsuit.  To view the full results of the comparison, please visit our web-site: http://www.nasd-law.com/documents/classvr.pdf   

In addition to the traditional higher rate of recovery, a suitability analysis is conducted in arbitration which takes the specific nuances of a claimant's case into account when valuing the case. When assessing whether the Medical Capital Notes were suitable for a claimant, an arbitration Panel reviews their age, level of sophistication, net worth and similar factors. However, in a class action, an investor's individual case facts would not be factored into the value of their case nor is a suitability analysis conducted. As such, eligible class members who purchased Medical Capital Notes from Securities America should consider whether they should participate in the class action or file an individual securities arbitration claim. 

Investors who purchased Medical Capital Notes from Securities America and sustained significant losses can contact K&T to explore their legal rights and options. The attorneys at K&T are dedicated to pursuing claims on behalf of investors who have suffered investment losses. K&T, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.

If you wish to discuss this announcement or have investment losses of $100,000 or more in Medical Capital Notes, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at http://www.nasd-law.com

CONTACT: Steven D. Toskes, Esquire
         Jahan K. Manasseh, Esquire
         Klayman & Toskes, P.A.

© 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