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Sallah & Cox, LLC and Blum & Silver, LLP Announce Filing of $3 Million in Arbitration Claims Against UBS Relating to the Sale of Lehman Brothers Principal Protection Notes

/ Source: GlobeNewswire

BOCA RATON, Fla., April 12, 2011 (GLOBE NEWSWIRE) -- The law firms of Sallah & Cox, LLC, ( ) headed by former Securities Exchange Commission and U.S. Attorney's Office lawyers, and Blum & Silver, LLP ( ), one of the preeminent investor protection law firms in the country, are continuing to investigate and pursue claims against UBS for its misleading sales of Lehman principal protection notes to customers.

Yesterday, the Financial Industry Regulatory Authority ("FINRA") announced that it entered into a letter of acceptance, waiver and consent ("AWC") with UBS in which it fined UBS $2.5 million and ordered UBS to pay $8.25 million in restitution to a limited number of customers for misrepresentations and omissions in its marketing of so-called 100% principal protection notes issued by Lehman Brothers.

In the past month, Sallah & Cox, LLC and Blum & Silver, LLP have filed over $3 million in claims against UBS based on the same misconduct cited by FINRA. They also believe these findings support the numerous arbitration awards entered against UBS since Lehman filed for bankruptcy in 2008.

In the AWC, FINRA found, for instance, that during the period March 17, 2008 to June 2008, UBS: 

  • misled customers regarding the risks associated with Lehman PPNs, including the product's '100% Principal Protection' feature;
  • failed to provide brokers with sufficient guidance on the use of information such as issuer credit risk and other information regarding the declining financial strength of Lehman Brothers;
  • failed to adequately train financial advisers in connection with the marketing and sale of Lehman PPNs; and
  • did not adequately analyze the suitability of sales of Lehman PPNs to certain UBS customers.

The restitution order covers only a fraction of investors who bought Lehman PPNs, but does not prevent investors from pursuing their claims against UBS.     

Sallah & Cox and Blum & Silver are encouraged by FINRA's findings against UBS and believe these findings further support their allegations in their recently-filed claims, as well as the dozens of other claims they have previously filed over the past 2 years. Nevertheless, they believe that UBS' misconduct in connection with its marketing and sales of Lehman PPNs and other Lehman structured notes, began long before March 17, 2008. 

Sallah & Cox and Blum & Silver are representing investors who suffered losses at UBS as a result of losses in Lehman PPNs and other Lehman structured notes. 

For additional information or to further discuss these matters, investors should contact either:

Additional information can also be found at their joint website dedicated to these issues at or simply,

Scott L. Silver of Blum & Silver, LLP and James D. Sallah of Sallah & Cox, LLC were recently awarded the most effective Securities Lawyers in South Florida by the Daily Business Review. They received this esteemed accolade for their success in obtaining one of the largest arbitration awards ever awarded against an individual broker. A FINRA panel awarded a group of investors over $7 million, including over $4 million in punitive damages, against former UBS broker, Gary J. Gross based upon what the panel found to be Gross's "willful and wanton" conduct and in "flagrant disregard" of the investors' rights.

Blum & Silver, LLP is a nationally-recognized securities law firm headquartered in South Florida, with a satellite office in New York, representing investors worldwide with their claims for losses due to stockbroker misconduct and brokerage firm negligence in securities litigation and arbitration matters. The firm has successfully recovered multi-million dollar awards for its clients against the country's top brokerage houses.

Sallah & Cox, LLC is located in Boca Raton, Florida. The firm consists of former SEC Enforcement attorneys who represent clients throughout the United States and Latin America in stockbroker misconduct and investment fraud cases. This firm has represented investors against most major Wall Street brokerage firms in claims involving stocks, options, auction rate securities, hedge funds, mutual funds, and bonds.

Blum & Silver's and Sallah & Cox, LLC's attorneys speak English and Spanish, and they are licensed to practice law in Florida, Colorado, New York and New Jersey.

CONTACT: Scott L. Silver, Esq. Blum & Silver, LLP 1-877-STOCK LAW (1-877-786-2552) James D. Sallah, Esq. Sallah & Cox, LLC 1-888-SEC-ATTY (1-888-732-2889)