November 03, 2008 – Crosby & Higgins LLP Investigates Claims Involving Lehman Brothers Principal Protected Notes
November 3, 2008
Crosby & Higgins LLP has begun investigating potential investor claims against the financial institutions that marketed and sold Lehman Brothers Protect Notes. Major financial institutions sold approximately $1 billion of these ‘principal protected notes’ issued by the now defunct Lehman Brothers to individual, corporate, and institutional investors. These products were sold by brokers at UBS, Merrill Lynch, Fidelity and Wachovia Securities and provided lucrative commissions and sales fees to brokers. The Lehman Brothers Principal Protected Notes were marketed to conservative investors as fixed income products with a derivative aspect linked to the S&P 500. Brokers allegedly ignored or distorted the significant investment risks and touted the ‘safety’ in pitching these ‘protected notes’ to their customers.
With the failure of Lehman Brothers in September, investors have now learned that the notes were not actually “protected” at all. Instead, investors held what were essentially unsecured loans to Lehman Brothers, and given the fact that Lehman filed for bankruptcy, the protected notes are now likely worthless. As a result, investors may possess a number of claims against the financial institutions that marketed and sold these instruments, including claims for negligence, breach of fiduciary duty, and fraud. Crosby & Higgins has been at the forefront of the credit market crisis pursuing retail and institutional investor claims. If you or your company purchased these derivative products and would like to discuss the matter further, please feel free to contact Todd A. Higgins, Esq., directly at 646-452-2304.