MIAMI, Oct. 20, 2008 (GLOBE NEWSWIRE) -- The securities law firm of Dimond Kaplan & Rothstein, P.A. (http://www.dkrpa.com/ or http://www.mystocklosses.com/) announces that it is investigating Financial Industry Regulatory Authority ("FINRA") securities arbitration claims to recover investment losses sustained in Lehman Brothers structured products, namely so-called "principal protected notes."
Principal protected notes (also known as guaranteed linked notes) are structured investment products that can be linked to a broad range of underlying investments, including indexes, options on indexes, baskets of stocks, bonds, and even alternative investments such as hedge funds. They often combine derivatives with equities and/or fixed-income investments. Principal protected notes were marketed to conservative, risk-averse investors who were seeking to preserve their capital and generate income as well as share in the growth of the general market.
Indeed, contrary to the usual risk/reward paradigm that dictates that increased potential for investment returns comes with increased risk of loss, a Lehman Brothers brochure represented that principal protected note investors would enjoy both "100 percent principal protection" and "uncapped appreciation potential." But the principal protected notes actually subjected investors to far more risk than they were led to believe. Specifically, after Lehman Brothers filed for bankruptcy protection in September 2008, holders of the Lehman principal protected notes will have to wait in line with other unsecured creditors to recover what is left of their money.
Dimond Kaplan & Rothstein, P.A. believes that many brokerage firms, including Merrill Lynch, UBS, JP Morgan, Fidelity, and Wachovia, marketed and sold the Lehman Brothers principal protected notes to their own clients. Lehman's structured products included Suns (Stock Upside Note Securities) and Prudents (Prudential Research Universe Diversified Equity Notes). Other brokerage firms also sold their own structured products and principal protected notes, such as Mitts (Merrill's Market Index Target- Term Securities), Sequins (Citigroup's Select Equity Indexed Notes), and Propels (Morgan Stanley's Protected Performance Equity Linked Securities). In total, nearly $70 billion in structured notes were sold to investors last year alone.
Dimond Kaplan & Rothstein, P.A. is an AV-Rated law firm that represents investors nationwide in stockbroker misconduct and investment fraud cases. The firm has represented investors against most major Wall Street brokerage firms in claims involving stocks, bonds, options, auction rate securities, mutual funds, hedge funds, and other structured products. If you lost money in a Lehman Brothers structured note or principal protected note or structured products issued by another brokerage firm, please contact Jeffrey Kaplan, Esq. of Dimond Kaplan & Rothstein, P.A. at (888) 578-6255 or http://mailto:jkaplan@dkrpa.com for a free case evaluation. You also may visit the firm on the web at www.dkrpa.com/ or www.investmentfraud-lawyer.com/.
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