Lehman Brothers Principal Protected Notes - A Clearly Flawed Product, States Page Perry, LLC

ATLANTA, Nov. 15, 2010 /PRNewswire/ -- Over the past eighteen months, three separate arbitration panels sitting in three separate cases have ordered rescission of principal protected notes sold by UBS Financial Services.  In other words, the panels ordered UBS to buy back the notes sold to investors at their original cost.  

Most recently, a Financial Industry Regulatory Authority (FINRA) arbitration panel ordered UBS to buy back $529,688 of principal protected notes sold to a New York couple.  In addition, the panel assessed the full costs of the hearing, which lasted over 20 sessions, against UBS.  The case is Edelson v. UBS Financial Services, Case Number 08-04357, decided October 27, 2010.

The Claimants were represented by Seth E. Lipner. "We believe this award, like the others we have won, shows the arbitrators believe UBS misnamed, mismarketed and misrepresented these products," said Mr. Lipner.

"UBS knew that Lehman was in trouble as far back as October 2007, but they continued to sell Lehman structured products anyway, ignoring the ever-growing risk," Mr. Lipner observed, adding:  "Not only weren't they candid with the public, they weren't candid even with their own brokers."

In earlier cases where Mr. Lipner represented investors who bought Lehman principal protected structured products from UBS (Severi vs. UBS, decided in December 2009, and Marcus et al. v. UBS, decided April 2010), arbitration panels also ordered UBS to buy back the investments.

UBS, which reportedly sold $1 billion of Lehman structured products to U.S. investors, is facing many similar arbitration claims across the country, and has reportedly not yet won a single such case where the investor was represented by counsel.

"These are highly complex products; they are too complex for ordinary investors to evaluate. We have obviously been successful in proving that," Mr. Lipner noted.

Page Perry, LLC, a law firm based in Atlanta, Georgia, is co-counsel with Mr. Lipner and his Garden City, New York law firm, Deutsch & Lipner, in representing a number of investors in Lehman structured note cases.

"We continue to receive inquiries from investors who acquired Lehman structured notes as a result of UBS's misrepresentation of it as a 'principal protected' investment," said J. Boyd Page, a senior partner at Page Perry, LLC in Atlanta. "Our legal team continues to investigate and pursue arbitrations on behalf of investors who purchased these products," he added. The brokers who sold the Lehman principal protected notes are not targets of investor claims.

SOURCE Page Perry, LLC