UBS Ordered To Pay $529,688 In Lehman Structured Notes Case

UBS lost big in a FINRA arbitration case in New York ordering them to pay $529,688 to investors who owned Lehman Brothers Holdings’ “100% Principal Protected Notes.” The principal protected notes were sold to a retired couple by Brett Coltman, their UBS broker, just a month before Lehman collapsed. The retired couple that had owned a plumbing supply company purchased $529,688 worth of the notes in August 2008. Today, they are virtually worthless.

The notes were marketed and sold to investors by UBS as a risk free investment vehicle that would return their entire invested amount in the Lehman Notes at maturity. Customers were not properly informed of the attendant risks involved with the Lehman Notes, specifically the credit risk of Lehman Brothers. Unfortunately, the representations of the investment being safe and risk free proved to be wrong, since the notes were nothing more than unsecured Lehman debt, which are now worthless.

The award was for the entire amount of their investment. The panel assessed all of the forum fees, or the fees of the arbitration, against UBS. Interestingly, the panel was composed of all “public” arbitrators. (FINRA #08-04357; Steven and Ellen Edelson v. UBS Financial Services, Inc.)

Contact our securities law firm at 1-800-259-9010, for a no obligation, confidential consultation, if you have suffered losses in these notes.

Contact Us
Contact Us: (800) 259-9010