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Lehman Note Sales Under Fire

By Mark H. Astarita, Esq.

And they are out of the gate. Claimants' attorneys are preparing to file arbitrations against brokers and firms for sales of Lehman structured notes. The cases are being filed against Lehman brokers, and UBS since it appears that for some unknown reason, UBS brokers were selling Lehman notes. According to press reports UBS sold $1 billion in Lehman notes. The merits of the claims are uncertain, although it appears that investors are going to claim that they were told that they were "less risky" than stocks. That is probably a true statement, and not actionable. Others are claiming that they were not told that the notes were tied to the credit risk of Lehman Brothers. While one has to wonder what difference that would have made to an investor, assuming it is a true statement, that claim is going to depend on the particular facts of each claim...continue to full post

Full post as published by SECLaw.com on November 03, 2008 (boomark / email).