Derivatives(Structured Products) Targeted in Class Action by the Law Offices of Ronald A. Marron
The action, captioned Miller v. Eksportfinans, A.S.A., et al., No. 10cv5336, is pending in the United States District Court for the Southern District of New York against defendants Eksportfinans and 29 financial services and investment banking firms who acted as underwriters for the issuance of the Securities.
The complaint alleges that the Securities were designed to appeal to older persons and retirees seeking higher yields than those available in Certificates of Deposit and/or treasuries in the current low interest rate environment. However, the Securities were, allegedly, nothing more than risk-laden derivatives, which defendants marketed directly to the investing public, mainly to elderly retired persons, such as the Plaintiff, an 84-year-old widow residing in San Diego.
The class action complaint further alleges that Eksportfinans' offering targeted the risk-averse conservative investors with suggestions that the notes were fully principal protected, which appealed to retired persons and others on fixed incomes who were seeking to preserve their capital and generate income.
Defendant Eksportfinans issued these securities to finance its international credit operation from its headquarters in Oslo, Norway. The securities allegedly provided twin benefits to Eksportfinans: (1) they raised capital, and (2) they provided Eksportfinans with an advantageous derivative position poised to transfer stock market losses to the investors. These securities were allegedly of an exotic type known as Reverse Convertible Notes or Bonds, a type of “structured product”, a category of derivatives also comprised of the Schwab Yield Plus Fund and Lehman Brothers products underwritten by Merrill Lynch and UBS. Allegedly, the Securities functioned to transfer the risks of loss of value in underlying securities from defendants to the small unsophisticated retail investors who were sold the notes or bonds.
Investors were allegedly confused by the hidden complexity of these “reverse convertibles” which mislead them into paying inflated prices for them. “Contingent Downside Protection” actually meant that the principal would be protected only if the price of the underlying security did not decrease below certain price at certain time. This caused the investors to lose money when the notes matured and they found themselves unexpectedly left holding shares of stock whose value was substantially less than the principal originally paid in. Defendant's securities allegedly caused forced conversions and losses to investors within a few months after their purchase, in many cases.
This class action was brought against Eksportfinans A.S.A. and the underwriters, who issued and facilitated the sale of the Securities to the public. In addition to Exportfinans, the underwriters named in the lawsuit include Banc of America Securities Limited, Merrill Lynch & Company; Bank of America Corporation; Banc of America Securities LLC; Bear, Stearns & Co.; JPMorgan; Barclay's Capital; BNP Paribas; Citigroup; Commerzbank Capital Markets Corp.; Credit Suisse; Daiwa Securities SMBC Europe; Deutsche Bank Securities; Dresdner Kleinwort; FTN Financial Securities Corp.; Goldman, Sachs & Co., Goldman Sachs International; Ixis Securities North America Inc.; Jeffries and Company, Inc.; Mitsubishi UFJ Securities International PLC; Mizuho International PLC; Morgan Stanley; Nomura International; Nordea PLC; The Toronto-Dominion Bank (TD Financial Group); UBS Investment Bank (UBS Financial Services); and Wells Fargo Bank.
Persons who bought the above-mentioned Securities of Eksportfinans between September 7, 2007 and July 13, 2010, and sustained damages, may, no later than September 13, 2010, request that the Court appoint them as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member‘s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may serve together as “lead plaintiff.” A plaintiff’s ability to share in any recovery is not, however, affected by the decision of whether or not to serve as a lead plaintiff. Plaintiffs may retain the Law Offices of Ronald A. Marron APLC, or other counsel of your choice, to serve as their counsel in this action.
The Law Offices of Ronald A. Marron APLC is a San Diego, California law firm active in complex litigation pending in federal and state courts throughout the United States. Ronald A. Marron has taken a leading role in many important actions on behalf of defrauded investors, consumers, and others for over 15 years. Persons wishing to discuss this action, or having any questions concerning this notice or their rights and interests with regard to the case, should contact attorney Ronald A. Marron, 3636 Fourth Avenue, Suite 202, San Diego, CA 92103, telephone (619) 696-9006 or visit http://www.investorsadvocates.com/structuredoverview.htm.
The Law Offices of Ronald A. Marron 개요
The Law Offices of Ronald A. Marron APLC는 캘리포니아 주 샌디에고의 법무 법인으로, 미국의 연방 및 주 정부에 현재 계류 중인 복잡한 소송들을 적극적으로 진행하고 있다. 로널드 매론(Ronald A. Marron)은 사기를 당한 투자자, 소비자 및 기타 피해자들을 대리하여 과거 15년 동안 여러 중요한 소송에서 주도적인 역할을 담당해 왔다.
연락처
Ronald A. Marron
(619) 696-9006
이 보도자료는 The Law Offices of Ronald A. Marron가(이) 작성해 뉴스와이어 서비스를 통해 배포한 뉴스입니다.
-
2010년 7월 20일 09:30