UBS Loses Big Case Involving Lehman Structured Notes

UBS lost big in a FINRA arbitration case ordering them to pay $529,688 to investors who owned Lehman Brothers Holdings structured products. The principal protected notes were sold to a retired couple by Brett Coltman, their UBS broker, just a month before Lehman collapsed. The retired couple that had owned a plumbing supply company purchased $3.5 million worth of structured products between 2006 and 2008. The Lehman notes were called “100% Principal Protected Notes” and the Coltman’s had purchased $529,688 worth in August 2008. They are now virtually worthless. (FINRA #08-04357; Steven and Ellen Edelson v. UBS Financial Services, Inc.)

The notes were marketed and sold to investors by UBS as a risk free investment vehicle that would return their entire invested amount in the Lehman Notes at maturity. Customers were not properly informed of the attendant risks involved with the Lehman Notes, specifically the credit risk of Lehman Brothers. Unfortunately, the representations of the investment being safe and risk free proved to be wrong, since the notes were nothing more than unsecured Lehman debt, which are now worthless.

Contact our securities law firm at 1-800-259-9010 if you have suffered losses in these notes.

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