Auction rate securities lawsuits
The financial fraud lawyers at Saiontz & Kirk are reviewing potential auction rate securities lawsuits for investors who have suffered damages as a result of “failed” auctions which have now essentially frozen their funds. Although these investments were marketed by many brokerage firms as very safe investments which were similar to money-market funds, approximately $330 billion worth of auction rate preferred shares are now unable to be redeemed by investors. Many individuals relied upon their ability to access these funds, and now are suffering severe financial harm.
Auction rate securities, also known as Auction Rate Preferred Shares (ARPS), are investments in a closed end fund which typically purchases triple-A rated securities, such as municipal bonds. They were sold as a very liquid investment, which would provide higher yields than money-market funds, but still allow easy access to the funds.
Over the past few months, there have been repeated “failed” auctions for these preferred shares, leaving virtually no buyers. The market to trade auction rate securities has collapsed, and many investors are now unable to redeem their shares.
Many individuals who own these auction rate preferred shares still are not fully aware of the predicament that they are in, and the large brokers who sold these shares by misleading the investors have not fully explained the extent of the auction rate problems. Many of these brokers are the same institutional investors who stopped making a market for the securities, resulting in the auction rate failures.
AUCTION RATE SECURITIES LAWYERS
If you are an investor who has over $100,000 invested in auction rate preferred stock, and have now suffered damages as a result your inability to redeem your shares, you may be entitled to a recovery through an auction rate class action or individual lawsuit. To have a potential claim reviewed by our auction rate securities lawyers, request a free consultation and claim evaluation.
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