A recent investigation and analysis into auto-callable structured products has uncovered massive losses for investors, with the 100 worst-performing ones collectively losing over $1 billion. To put that into perspective, that’s more than 55% of their original total value of $1.84 billion. This sheds light on the significant risks tied…
A FINRA Arbitration Panel ordered UBS Financial Services, Inc. and one of its financial advisors, Andrew Burish, to pay $92.2 million in damages, consisting of $24.6 million in compensatory damages and $75.3 million in punitive damages, to nine customers with brokerage accounts at UBS. According to the FINRA Award, the…
On April 30, 2024, a class action was filed against Merrill Lynch in the Western District Court of North Carolina to recover the deferred compensation that Merrill Lynch cancelled upon Plaintiffs’ voluntary resignation. While we believe there are strong claims against Merrill Lynch for violation of ERISA, we believe that…
On November 22, 2023, the Southern District of New York granted Morgan Stanley’s motion to compel arbitration in the class action Shafer, et. al. v. Morgan Stanley, et. al. (Case 1:20-cv-11047-PGG). Plaintiffs, former Morgan Stanley financial advisors, sued Morgan Stanley asserting that Morgan Stanley violated the Employee Retirement Income Security…
On November 7, 2024, a class action lawsuit was filed against Lightstone Value Plus REITs I, II, III, their external advisers, and their 2022 directors, in New Jersey Federal Court. The Lightstone Value Plus REIT is a real estate investment trust focused on acquiring and managing income-producing properties, primarily residential…
The T-Rex 2X Inverse Nvidia Daily Target ETF (NVDQ) has recently caused significant losses for investors. This Exchange Traded Fund or ETF, which aims to capitalize on declines in Nvidia’s stock, was recommended by some financial advisors as a strategic investment for clients seeking to profit from the tech giant’s…
On November 5, 2024, Judge Paul G. Gardephe of the United States District Court for the Southern District of New York denied Morgan Stanley’s motion to reconsider and, in a detailed opinion, reaffirmed his November 21, 2023 ruling that Morgan Stanley’s deferred compensation plans are ERISA plans. Last year, Judge…
Lax & Neville LLP is investigating claims against brokerage firms for the sale of auto-callable notes to customers or investors. An auto-callable note is a complex, highly risky structured product that can result in a complete loss of principal. Financial advisors at brokerage firms are highly incentivized to recommend these…
Click here to listen. Join Jenny Kim from The Gershman Group as she sits down with Brian Neville from Lax and Neville to discuss the latest retention package in the financial industry. They explore the unusual nature of KKR’s acquisition of Janney and what it means for financial advisors. Tune…
Click here to listen. Recently, financial advisory firms have been getting slammed by lawsuits over deferred compensation and ERISA violations, with cases involving major players like Morgan Stanley, Merrill Lynch, and U.S. Bancorp. To help you navigate these turbulent waters, we sat down with Barry R. Lax, a founding partner…