Will Ameriprise Step Up To The Plate To Save Securities America?

An expert witness familiar with Ameriprise Financial and its independent broker-dealer subsidiary, Securities America, claims that the parent company could kick in $110 million or more to help settle the massive Regulation D claims that are pending. The Reg D claims are related to the sale of private placement offerings issued by Medical Capital and Provident Royalties. Attorneys for plaintiffs suing the firm and counsel for Securities America are supposed to meet for a court ordered mediation to see if the sides can resolve the matters. The dispute is over $400 million in soured private placements so resolution is likely dependent upon whether Ameriprise can sweeten the pot enough to get the attorneys for the investors to agree to a settlement. Timothy Hurley, a managing director at boutique investment bank Bentley Securities Corporation, who was hired as an expert witness for attorneys for the plaintiffs suing Securities America said it was impossible to put an upper limit on what Ameriprise would pay but he would suggest a minimum of $110 million.

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