Harmed Investors Are Encouraged to Seek Legal Counsel
Legal claims have been filed against Sanford C. Bernstein & Co. & Alliance Bernstein LP, alleging that the related financial services firms made material misrepresentations and omissions regarding its “Options Advantage'' strategy. Investors reportedly were told that the complex options strategy was low risk and low volatility despite the fact that the strategy actually exposed investors to significant risk of loss.
At Dimond Kaplan and Rothstein, P.A. (DKR), we represent investors who have suffered investment losses related to unsuitable investment strategies, misrepresentations, and other forms of fraud or negligence. If you invested in the Sanford Bernstein/Alliance Bernstein Options Advantage strategy, contact our office at 1.855.758.0653 to schedule a FREE case evaluation.
Legal Action Against Sanford Bernstein/Alliance Bernstein
Investors who sustained losses after investing in the Sanford Bernstein/Alliance Bernstein Options Advantage strategy may be entitled to recover their losses through a FINRA arbitration proceeding. It is strongly recommended that aggrieved investors seek legal counsel immediately to determine their rights and responsibilities. DKR has represented thousands of investors in FINRA arbitration proceedings, including many involving complex options strategies. The firms lawyers have served on the FINRA rules committee and they have an intimate understanding of the FINRA arbitration process.
Cases against Sanford C. Bernstein & Co. & Alliance Bernstein LP allege that the brokerage firms made material misrepresentations and omissions about the Options Advantage strategy. Investors reportedly were informed that the fund was low risk and not subject to significant market volatility. They were told that the “cash-free” strategy, which promoted the use of margin, would enable them to earn an additional 1% to 2% return on their underlying portfolios. In truth, it is believed that while the Options Advantage strategy had the potential of only a limited profits, investors were subject to significant risk of loss that was not adequately disclosed.
Losses Related to the Options Advantage Strategy
Investors in the Options Advantage strategy suffered substantial losses due to fluctuations in the market that were not supposed to cause losses in the Options Advantage strategy. The strategy, while sold as a safe and low-risk investment strategy, was just the opposite.
Bernstein reportedly notified investors in 2022 of its intention to allow the strategy to close in October 2022. The strategy was offered beginning in 2018 and remained open through the fall of 2022.
What to Do If You Invested in the Options Advantage Strategy
If you invested in the Options Advantage strategy offered by Sanford Bernstein/Alliance Bernstein, you should speak with an attorney to determine your legal rights. Depending on the situation, you might be entitled to a claim for losses. It is important to act quickly in order to have the best chance of success.
Contact Our Office for a Free Consultation
Contact attorney Jeffrey B. Kaplan with Dimond Kaplan and Rothstein, P.A. (DKR) to schedule a free, no-obligation consultation if you invested in the Sanford Bernstein/Alliance Bernstein Options Advantage Strategy. DKR is a nationally recognized law firm that represents investors who have lost money as a result of investment fraud and broker misconduct. The firm has recovered more than $200 million dollars for victims of investment fraud and broker misconduct, including millions of dollars for investors who lost money in complex options strategies. With offices in Miami, Los Angeles, and New York, DKR represents clients nationwide and throughout Latin America. Cases are handled on a contingency fee basis, meaning there are no fees unless we win. Contact our office at 1.855.758.0653 to schedule a FREE case evaluation. To learn more about DKR, you can review our website at www.dkrpa.com.