Securities Arbitration vs. Class Action
Because of the losses sustained in Lehman Brothers 100% Principal Protection Notes, a class action lawsuit has been filed against UBS Financial Services in federal court. As a result, you may be left wondering if you should participate in the class action lawsuit, or file an individual securities arbitration claim. Klayman & Toskes strongly encourages investors who invested $100,000 or more in Lehman Notes to file an individual securities arbitration claim, instead of waiting for the class action litigation to take its course. While class action lawsuits could take several years, arbitration claims are usually concluded within 2 years.
In addition to time considerations, an investor should also consider the potential for their overall rate of recovery. By participating in a class action lawsuit, an investor will most likely recover only pennies on the dollar. However, if you invested $100,000 or more in Lehman Notes, it may be more beneficial for you to file an individual securities arbitration claim. In 2003, Klayman & Toskes conducted a study of securities arbitration versus class action. The study concluded that investors who file a securities arbitration claim have a much greater chance of obtaining an overall higher rate of recovery as opposed to what they could recover by participating in a class action lawsuit.
Among other factors, when you file a securities arbitration claim, your individual, personalized case facts are considered by the Panel, and they are factored into the value of the case. In other words, in the securities arbitration forum, you are not just another number in a pool of class members, but you are person who has a story to tell. To view the full results of the comparison, please visit our web-site: http://www.nasd-law.com/documents/classvr.pdf