According to an award issued by a Financial Industry Regulatory Authority (FINRA) arbitration panel, brokerage giant UBS must pay cell phone maker Kajeet Inc. nearly $81 million in damages over student-loan auction rate securities it sold to the company.
The award comes on the heals of hundred of arbitration claims filed on behalf of investors alleging misrepresentation in the sale of UBS proprietary structured notes labeled as Principal Protected Notes (PPN), Partially Principal Protected Notes (PPPN) or Return Optimization Notes (RON). Although the notes were marketed as guaranteeing some level of protection for the investors, many were backed by the credit of now defunct Lehman Brothers Holdings. As unsecured debt holders, the investors are now forced to file arbitration claims and await bankruptcy proceeding distributions to recoup their losses.
If you purchased a UBS proprietary structured note, please contact our offices to discuss your options for recovery. Thank you.