SOURCE: Tramont, Guerra & Nunez, P.A.

November 13, 2008 08:00 ET

Notice to All UBS Securities, LLC Customers Who Invested in Lehman Principal Protection Notes From the Law Firm of Tramont Guerra & Nunez, PA

CORAL GABLES, FL--(Marketwire - November 13, 2008) - The Securities Law Firm of Tramont Guerra & Núñez, PA (TGN) makes an announcement to all customers of UBS Financial Services, Inc. (NYSE: UBS), who invested in the Lehman Principal Protection Notes concerning the class action lawsuit (Case No. 08 CV 09578) filed November 6, 2008. Investors in the Principal Protection Notes, a "structured investment" issued and managed by Lehman Brothers, Inc. (PINKSHEETS: LEHMQ) which guaranteed 100% of the invested principal if held to maturity, are now senior unsecured creditors in the Lehman bankruptcy proceeding. On September 16, 2008, Barclays Capital (NYSE: BCS) announced a definitive agreement to acquire substantially all of the North American operations of Lehman Brothers, Inc. for consideration consisting of the assumption of liabilities, $250 million in cash and certain contingent considerations.

The class action lawsuit alleges that the Principal Protection Note Prospectus issued to investors stated that Principal Protection Notes are "structured investment vehicles that bear interest in an amount determined by reference to the performance level or value of an underlying security or basket of securities in stocks, currencies, commodities, or other instruments." The guarantee of "principal protection" if held to maturity and the payment of returns at such high rates were features that were emphasized to investors who sought current income and safety of principal. Many investors did not understand that the principal was not invested in an underlying asset other than an unsecured loan to Lehman which was used to fund business operations.

Brokerage firms are required to provide advice based on the "know your customer" rule to determine the suitability of investment recommendations. The recommendation of unsuitable investments and concentration in a particular security or sector, are both violations which may qualify an investor for an individual arbitration claim with FINRA.

The Securities Law Firm of Tramont Guerra & Núñez, PA, is a nationally recognized, Martindale Hubbell "AV" rated law firm. To request a confidential consultation from a TGN attorney for investment losses that exceed $100,000 from a full service brokerage account, contact us on our website at To speak directly with an attorney, call (800) 578-0137 and ask for David Chacin, Esquire.

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Contact Information

  • Contact:
    David Chacin, Esquire
    Tramont Guerra Núñez, PA
    (800) 578-0137
    Email Contact