A FINRA securities arbitration panel recently ordered Neuberger Berman to pay approximately $5.5 million to three investors wholost money in Lehman Brothers’ structured products. The investors lost their money when Lehman Brothers filed for bankruptcy protection in September 2008. The arbitration award represents a total return of the investors’ losses.
As with many similar cases filed against brokerage firm UBS Financial Services, Neuberger allegedly told the investors that the Lehman securities provided with full or partial protection to the principal that was invested in the securities. Neuberger allegedly failed to adequately disclose that the structured products actually were debt instruments of the financially shaky Lehman Brothers.
This recent FINRA arbitration award is another in string of arbitration decisions in favor of investors who lost money in Lehman Brothers principal protection notes and other Lehman Brothers structured products. The prior securities arbitration awards involved UBS sales of Lehman Brothers structured products. UBS sold more than $1 billion of Lehman Brothers structured products to retail investors. Many of the UBS cases involve UBS painting a rosy picture of Lehman Brothers to retail investors and recommending that retail investors buy Lehman Brothers securities at the same time that UBS was issuing significant warnings about Lehman to its institutional investors and recommending that its institutional investors sell Lehman securities.
Dimond Kaplan & Rothstein, P.A. represents many Lehman Brothers structured product investors throughout the United States and Latin America. If your brokerage firm sold you a Lehman Brothers principal protection note or a Lehman Brothers structured product, please call a Dimond Kaplan & Rothstein, P.A. lawyer for a free consultation about how you may be able to recover your investment losses.