Category Archives: Class Action vs Arbitration

Recent IBM Class Action Lawsuit Provides Investors Loss Recovery Options

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Recently, an IBM Class Action Lawsuit (Case No. 15-CV-01513) was filed in the United States District Court for the Southern District of New York for the class period from April 17, 2014 to October 17, 2014. These developments requires investors who acquired IBM stock (NYSE:IBM) through employment, inheritance or as a personal investment to consider their legal options. If investors maintained concentrated positions in IBM stock with full-service brokerage firms they should to consider what legal options are available to recover their investment losses. Investors may recover investment losses through a Financial Industry Regulatory Authority (FINRA) securities arbitration claim for damages. FINRA arbitration claims allege damages based on your personal circumstances and case facts, whereas class action members alleged damages suffered by the class as a whole, not individually. FINRA arbitration claims can cover longer periods of time than the class action period price declines and also include losses in securities not covered by the class action lawsuit but are the result of FINRA rule violations.
For many investors, IBM stock represented a long term holding acquired through investment, inheritance or as an IBM pension plan participant. According to Klayman & Toskes, P.A. co-founder Steven D. Toskes, “Investors in IBM stock were not educated about the risks associated with maintaining a concentrated stock position. Mr. Toskes explains, “Brokerage firms are required to supervise the activities in brokerage accounts, losses may be attributed to the failure to adequately supervise the stockbroker and the brokerage account. Recommendations which result in unsuitable investment advice and/or failure to recommend appropriate risk management strategies for unprotected concentrated stock positions are both causes of action that may be available to investors against their full-service brokerage firm in an individual securities arbitration claim filed with FINRA.”
Current and former IBM employees who have sustained investment losses can contact K&T to explore their legal rights and options. The attorneys at K&T are dedicated to pursuing claims on behalf of investors who have suffered investment losses. K&T, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation.
About Klayman & Toskes
Klayman & Toskes, a leading securities and litigation law firm, practices exclusively in the field of securities arbitration and litigation, on behalf of retail and institutional investors. The firm represents investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.

UBS-Lehman Class Action Opt-Out

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Deadline To Opt-Out of the UBS-Lehman Notes Class Action is November 19, 2013

UBS Financial Services customers who are class members in the securities class action lawsuit filed against UBS, Case No. 09-md-02017, which involves losses sustained in certain Lehman Principal Protection Notes, Auto-Callable Notes, and Return Optimization Notes (collectively referred to as “Lehman Notes”), should be aware that that the U.S. District Court recently approved an Order Concerning Proposed Settlement with UBS. The Order provides that a request for exclusion from the settlement class must be postmarked no later than November 19, 2013, which is 21 calendar days prior to the Court ordered Settlement Hearing of December 10, 2013. UBS customers who are eligible to participate in the class action settlement should consider whether they should participate in the class action or file an individual securities arbitration claim in the arbitration forum established by the Financial Industry Regulatory Authority (“FINRA”).

Presently, Klayman & Toskes represents investors who purchased Lehman Notes from UBS in securities arbitration claims before FINRA. These investors chose to pursue their claims individually rather than participate in the class action because they suffered large losses. K&T reminds investors of the benefits of filing an individual securities arbitration claim, as opposed to participating in a class action lawsuit.  By participating in a class action lawsuit, an investor may only recover a nominal amount.  However, if one has experienced significant losses in excess of $100,000 in Lehman Notes, it may be more beneficial for them to file an individual securities arbitration claim.  In 2003, Klayman & Toskes conducted a detailed study of securities arbitration versus class action.  The study concluded that investors who file a securities arbitration claim traditionally obtain an overall higher rate of recovery as opposed to participating in a class action lawsuit.  To view the full results of the comparison, click here.

Investors who purchased Lehman Notes from UBS and sustained significant losses in excess of $100,000 can contact Klayman & Toskes, toll-free, at 888-997-9956, to explore their legal rights and options. For more information on Lehman Note claims, visit our Lehman Note website at www.lehmanprincipalprotectionnotes.com.

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