November 11, 2010 – Crosby & Higgins LLP Delivers First Arbitration Award against Oppenheimer & Co. for Clients Holding Auction Rate Securities
November 11, 2010
Crosby & Higgins LLP has earned an important victory in the ongoing fight for investors still trapped in auction rate securities sold to them by Oppenheimer & Co. After six days of hearings in Los Angeles, California, the Financial Industry Regulatory Authority Panel ordered Oppenheimer to return the investor’s FINRA filing fees, awarded expert witness fees, and ordered the rescission and repurchase by Oppenheimer of the ARS securities at issue. The Award, which is the first ever by a FINRA Panel against Oppenheimer arising out of its sale of auction rate securities, also ordered that the firm pay every penny of the FINRA forum hearing fees. All of this is welcome news for Oppenheimer’s clients who continue to hold upwards of $600 million in illiquid ARS. Unlike many of the other major financial institutions that have entered into global regulatory settlements and repurchased tens of billions of dollars in ARS holdings from customers who thought they were being sold safe, liquid, cash equivalent investments, Oppenheimer, along with a handful of other firms, refuses to take responsibility for its wrongdoing in connection with ARS and has thus far refused to make things right, leaving investors little choice but to seek relief through arbitration.