updated 4/14/2011 9:16:47 AM ET 2011-04-14T13:16:47

NEW YORK, April 13, 2011 (GLOBE NEWSWIRE) -- The Law Office of Christopher J. Gray, P.C. in New York City ( newcases@investorlawyers.net ) informs investors of the terms of a Financial Industry Regulatory Authority ( or "FINRA") settlement with brokerage firm UBS Financial Services (a unit of UBS AG (NYSE:UBS)) concerning UBS's sale of so-called "100% Principal-Protection" notes issued by the former Lehman Brothers Holdings.

The settlement resulted in UBS agreeing to pay a fine of $2.5 million, and required UBS to pay $8.25 million in restitution for omissions and statements its personnel made that allegedly misled some investors regarding the "principal protection" feature of 100% Principal-Protection Notes ("PPNs") that Lehman Brothers Holdings Inc. issued prior to its September 2008 bankruptcy filing.  The $8.24 million restitution fund is available only to limited class of purchasers of the PPNs from UBS (as further explained below).

FINRA alleged that from March to June 2008 as the credit crisis worsened, UBS advertised and some UBS financial advisors described the structured notes as principal-protected investments and failed to emphasize they were unsecured obligations of Lehman Brothers, which eventually filed for bankruptcy in September 2008. FINRA also alleged that some of UBS's financial advisors did not understand the product, including the limitations of the "protection" feature. Consequently, certain financial advisors allegedly communicated incorrect information to their customers. FINRA also alleged that certain UBS advertising materials had the effect of misleading customers regarding the characteristics and risks of the PPNs.

Law Office of Christopher J. Gray, P.C. is investigating possible arbitration claims on behalf of investors in PPNs and other Lehman Brothers-issued securities and wishes to inform investors that the restitution provided for in the FINRA settlement is available to only a small subset of investors who purchased the PPNs. To be eligible investors must have both a) listed their financial risk tolerance as conservative or moderate on UBS account forms; and b) purchased the PPNs during a three and one-half month period between March 2008 and June 2008. Investors who did not list these risk tolerances or who purchased at other times are not eligible for any payment in connection with the settlement. The full terms of the settlement and available restitution are accessible on the Firm's blog at www.investorlawyers.net.

The Firm offers a confidential no-obligation consultation for investors who believe that they may have a valid claim arising out of investments in PPNs and other Lehman Brothers-issued securities. The Law Office of Christopher J. Gray, P.C. has represented investors in numerous arbitration proceedings before the FINRA (Financial Industry Regulatory Authority), its predecessors the National Association of Securities Dealers (NASD) and New York Stock Exchange Regulation, Inc., and the National Futures Association, as well as in litigation before the state and federal courts. The Firm recently won a $765,000 arbitration award on behalf of an investor who alleged that a brokerage firm recommended unsuitable high-risk mortgage REITs to customers including an 85-year-old retiree. The Firm's contact information is below.

CONTACT: Law Office of Christopher J. Gray, P.C.
         460 Park Avenue, 21st Floor
         New York, New York 10022
         (212) 838-3221
         (212) 937-3139 (fax)

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