FINRA Fines UBS for Sale of PPNs

There has been a significant development for UBS customers who purchased principal protected structured notes issued by Lehman Brothers Holdings, Inc (“Lehman Brothers”). The Financial Industry Regulatory Authority (“FINRA”) fined UBS $2.5 million and also ordered it to pay $8.25 million in restitution to innocent investors as a result of UBS’s misconduct. These principal protected structured notes were developed, underwritten, offered, marketed and sold by UBS to its customers as safe and principal protected investments; however, they were extremely risky and became worthless when Lehman Brothers filed for bankruptcy.

A number of arbitration awards have already been issued in favor of customers who have suffered losses in these product. Our review of FINRA’s arbitration awards indicates that all available arbitration awards concerning the Lehman Brothers principal protected structured notes have been rendered in favor of investors and against UBS. Please contact us today if you have invested in any structured notes issued by Lehman.

The detailed settlement issued by FINRA can be found here: https://www.finra.org/web/groups/industry/@ip/@enf/@ad/documents/industry/p123478