New York Securities Lawyer Blog
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 structured products to their customers despite the facts that these auto-callable notes may neither be suitable nor in the best interests for their customers.
Prior to recommending these investment products to investors, financial advisors are required to fully explain the details and risks of these complex investment products, such as, illiquidity due to the highly customized nature of the investment; market risk, including market volatility or changes in the underlying stock or index; and credit risks, including defaulting on its debt obligations, which could expose investors to lose some, or all, of the principal amount they invested as well as any other payments that may be due on the structured notes.
Morgan Stanley, Stifel, JP Morgan, Goldman Sachs and UBS have issued billions of auto-callable structured products to investors. Through our investigation, we understand that many financial advisors at these firms may have breached their obligations to fully disclose all the risks associated with the auto-callable notes and sold these auto-callable notes for the incentive compensation despite the facts that the auto-callable notes may neither have been suitable for nor in the best interest of their customers.
Our firm has represented hundreds of investors in structured product claims against various financial and brokerage firms. If you believe you are a victim of fraud or may have a case relating to your structured product investment, including Auto-Call or auto-callable notes, please contact our attorneys at (212) 696-1999 for a free consultation.