Auction-Rate Securities Sold by Scottrade, Stifel Nicolaus and Edward Jones Investigated
The attorneys at Carey & Danis are looking into claims that Scottrade, Stifel Nicolaus and Edward Jones violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by deceiving investors about the investment characteristics of auction-rate securities and the auction market in which the securities are traded.
Auction-rate securities are municipal or corporate debt securities or preferred stocks that pay interest at rates set through periodic auctions. The instruments typically have long-term maturity dates or no maturity date.
Scottrade, Stifel Nicolaus and Edward Jones may have offered and sold auction-rate securities to the public as highly liquid cash-management instruments and as suitable alternatives to money market mutual funds. On Feb. 13, 2008, all of the major broker-dealers withdrew their support for the auctions. As a result, investors may have been unable to liquidate their auction rate securities.
On May 8, Carey & Danis filed a class action lawsuit in the U.S. District Court for the Southern District of New York on behalf of persons who purchased auction rate securities from UBS AG (NYSE: UBS), UBS Securities LLC and UBS Financial Services Inc. between May 8, 2003 and Feb. 13, 2008 and who continued to hold the securities as of Feb. 13, 2008.
Auction-rate securities investors who wish to discuss their rights against Scottrade, Stifel Nicolaus, Edward Jones or any other broker-dealer may contact Carey & Danis toll-free at 800-721-2519 or fill out our online contact form
