Shepherd Smith Edwards & Kantas Investigates Claims for UBS Clients Invested in 100% Principal Protected Notes in Light of FINRA Fines and Restitution of Nearly $11 Million

/ Source: GlobeNewswire

NEW YORK, April 13, 2011 (GLOBE NEWSWIRE) -- The Securities Law Firm of Shepherd Smith Edwards & Kantas LLP, , is currently investigating claims on behalf of investors with accounts at UBS who purchased Lehman Brothers 100% Principal Protection Notes (PPNs) in the months before Lehman filed for bankruptcy. The Financial Industry Regulatory Authority (FINRA) has announced that UBS must pay $2.5 million in fines and $8.25 million in restitution to customers who were misled about the "principal protection" feature of the Lehman Brothers 100% Principal Protection Notes (PPNs).

FINRA found that many UBS advisers did not understand the complexity of the Lehman Brothers 100% Principal Protection Notes (PPNs) they were selling, resulting in their failure to disclose information regarding Lehman's credit risk and its effect on potential losses. FINRA concluded that this product was unsuitable for investors with a conservative or moderate risk profile. Moreover, these particular investors would be even more inclined to rely on UBS' representations about the "principal protection" aspect of the Lehman PPNs due to their aversion to risk based on their investment objectives.

FINRA's findings have been mirrored in a series of FINRA arbitration awards to investors for PPN losses and we feel like this trend will continue in the future for those who have suffered losses in Lehman Brothers Principal Protection Notes (PPNs)

Shepherd Smith Edwards & Kantas LLP has a team of attorneys, consultants and staff 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 over 1,000 investors over the last 18 years in negotiation, mediation, arbitration and litigation.

Clients we are representing in Lehman Brothers 100% Principal Protection Notes FINRA arbitration lawsuits just got a good break. FINRA announced today against UBS a fine and restitution for burned investors. Often in these sorts of cases, regulatory actions, including fines like this one, can help victims recover sums that were lost. Often, the regulatory action acts as a roadmap for attorneys in the discovery process. More importantly, we are often successful introducing the regulatory release or documents in the FINRA arbitration claim or lawsuit and it becomes an effective document in establishing the brokerage firm's liability. We believe today's actions increase the odds of recovering losses for those who have sustained losses at UBS in Lehman Brothers 100% Principal Protection Notes.

CONTACT: 800-259-9010 Kirk Smith