Schwab Auction Rate Securities' Investors, Are Your ARS Accounts Now Frozen?
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Many investors have been "left out in the cold," so to speak, after they were left holding an unsalable product they were told was safe, secure, and "as good as cash." Investors were told that Schwab's Auction Rate Securities (ARS) were both liquid and safe when they were anything but. The economy's collapse in 2008 left investors out in the cold;t these illiquid assets could no longer be touched and they were in assets worthless.
This was not simply accepted as a matter of course, and powerful people immediately sprang into action. Indeed, New York's Andrew Cuomo filed a lawsuit against the company, citing investment fraud. That lawsuit has since been dismissed and is now under appeal by New York Atty. Gen. Eric Schneiderman. It's unclear at this stage whether or not the victims of that mission presentation will be able to recoup any losses, but as the case winds its way through the courts, investors still have hope that they may be able to recoup their investments.
What happened?
Since 2008, the economy's collapse has meant that many investors of ARS through Schwab and other companies are now left with "frozen" illiquid assets that they cannot sell. Schwab's lawsuit charged it with "fraudulent and deceptive conduct," according to Cuomo's original charges, with investors holding approximately $787.9 million of illiquid investments. Although Schwab may not have to provide restitution to victims pending Schneiderman's appeal, this is yet to be seen in that investors may still have recourse.
Have you invested in Schwab Auction Rate Securities?
If you've invested with Schwab in its Auction Rate Securities, you may have recourse so that you can recoup the losses you incurred with ARS structure collapse. Brokers routinely misrepresented these funds as short-term, liquid and safe, with little risk. This of course was not the case, and thus is the crux of the Schwab case.
What a securities fraud attorney can do for you
An attorney who is versed in securities fraud and familiar with Schwab's misrepresentation of auction rate securities will take a look at your case and determine whether or not it has merit. Your attorney will be able to help you determine the best course of action; securities arbitration is one way you may find to recoup your losses in this case. Your attorney will best be able to tell you whether or not you have a case, and if so, what to do next.
AUTHOR: Joel McLaughlin
Copyright Diane A. Nygaard, PA
More information about Diane A. Nygaard, PA
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
What happened?
Since 2008, the economy's collapse has meant that many investors of ARS through Schwab and other companies are now left with "frozen" illiquid assets that they cannot sell. Schwab's lawsuit charged it with "fraudulent and deceptive conduct," according to Cuomo's original charges, with investors holding approximately $787.9 million of illiquid investments. Although Schwab may not have to provide restitution to victims pending Schneiderman's appeal, this is yet to be seen in that investors may still have recourse.
Have you invested in Schwab Auction Rate Securities?
If you've invested with Schwab in its Auction Rate Securities, you may have recourse so that you can recoup the losses you incurred with ARS structure collapse. Brokers routinely misrepresented these funds as short-term, liquid and safe, with little risk. This of course was not the case, and thus is the crux of the Schwab case.
What a securities fraud attorney can do for you
An attorney who is versed in securities fraud and familiar with Schwab's misrepresentation of auction rate securities will take a look at your case and determine whether or not it has merit. Your attorney will be able to help you determine the best course of action; securities arbitration is one way you may find to recoup your losses in this case. Your attorney will best be able to tell you whether or not you have a case, and if so, what to do next.
AUTHOR: Joel McLaughlin
Copyright Diane A. Nygaard, PA
More information about Diane A. Nygaard, PA
View all articles published by Diane A. Nygaard, PA
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
