New York, June 6, 2016 (GLOBE NEWSWIRE) – The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.nasd-law.com, comments on recent lawsuits filed in response to The Department of Labor’s (“DOL”) recently finalized amendment to the fiduciary rule under the Employee Retirement Income Security Act (ERISA) that expands the scope of those who become fiduciaries. Despite the increased transparency the amendment will provide to investors, nine plaintiff’s including the Securities Industry and Financial Markets Association and the U.S. Chamber of Commerce, are seeking to have the rule vacated. A second lawsuit has also been filed by the National Association for Fixed Annuities (“NAFA”) in a similar effort to have the courts halt these DOL regulations.
According to Lawrence L. Klayman of Klayman & Toskes, P.A., “The DOL has effectuated a huge victory for middle class Americans who have been subjected to an erosion in retirement security for the past decade. In the past 22 years I have represented investors who have suffered substantial losses in their retirement accounts because investment companies put their own interests ahead of their clients’.” Regarding the recent lawsuits filed by both the nine plaintiff’s and NAFA, Mr. Klayman commented that the “lawsuits are nothing more than an attempt by Wall Street to undermine basic investor protection efforts that were long overdue.”
Both complaints are essentially asking the courts to strike down the DOL’s regulation insofar as it will require most brokers and investment advisors to act as fiduciaries. With respect to these complaints, Mr. Klayman responded that “the modern brokerage industry heavily advertises the fact that they are advisors who offer comprehensive services for all types of investors. However, each and every time that we bring claims on behalf of investors in the securities arbitration forum, which is the only remedy available, the brokerage firms that we prosecute always defend and take the position that they are just order takers. The DOL’s amendment to the fiduciary rule reflects the true nature of the business relationship that exists today between the brokerage industry and investors. These lawsuits are simply an effort to perpetuate customer harm.”
About Klayman & Toskes, P.A.
K&T is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation, on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm represents high net-worth, ultra-high-net-worth, and institutional investors, such as non-profit organizations, unions, public and multi-employer pension funds. K&T has office locations in California, Florida, New York and Puerto Rico.