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Lehman Note Investor Obtains 1/2 an Award

By Mark H. Astarita, Esq.

A FINRA arbitration panel has awarded damages against UBS in favor of an investor who purchased Lehman principal protected notes.While the WSJ is presenting the award as a significant win for the investor, and an indicator of the outcome of other cases relating to the Lehman notes, I am not so sure this is that big a win. According to the details contained in the article, the investor obtained 1/2 of the claimed damages, plus interest, costs and an undetermined amount for attorneys fees.Some would say that any recovery is a good recovery, but is this really a win for the investor? The Lehman notes are worthless.As in most arbitration awards, the three-person arbitration panel didn't give reasons for its findings. According to the WSJ, the investor argued  that the notes were "speculative derivative securities" and were "unsuitable" for unsophisticated investors...continue to full post

Full post as published by SECLaw.com on December 07, 2009 (boomark / email).