Case Results

SETTLEMENT

$2,000,000 recovery for an institutional investor

$2,000,000 recovery for an institutional investor, a hedge fund, against a hedge fund manager, in federal court, alleging breach of fiduciary duty in managing hedge fund investments.

CASE NO. 17-00952

Juan Medero-Fernandez, Individually and as Beneficiary of the Juan Medero Fernandez Retirement Plan and Maria Navedo v. UBS Financial Services, Inc. and UBS Financial Services Inc. of Puerto Rico

Erez Law represented an elderly Puerto Rico investor and his wife that sustained significant losses in UBS proprietary closed-end funds that invested predominantly in Puerto Rico bonds as well as losses as in Puerto Rico bonds. The final hearing lasted eight days. David Lugo was the broker for the investors at UBS. The Claimants alleged that Mr. Lugo and UBS recommended an over concentrated and unsuitable position in the UBS Puerto Rico funds and Puerto Rico bonds. The FINRA panel awarded the Claimants $1,880,000. The Award is significant in that the investors’ net out-of-pocket losses were $1.1M and the award is significantly in excess of the net out-of-pocket losses.

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SETTLEMENT

Recovered $1,450,000 for ultra high net worth individual against major brokerage firm

Erez Law recovered $1,450,000 in 2021 for a high net worth investor against a major brokerage firm. The claims were based on misrepresentations and unsuitable recommendation of a proprietary option strategy. Erez Law brought claims for negligence, breach of fiduciary duty and violation of the Florida Securities Act amongst other things. The settlement is notable for percentage of losses recovered for an ultra high net worth individual.

CASE NO. 11-01948

Robert Billings and Michele Billings v. Merrill Lynch, Pierce, Fenner & Smith, Inc.

Erez Law recovered $1,376,463 against Merrill Lynch for investors who invested in Fannie Mae preferred shares. A Merrill Lynch broker recommended Fannie Mae preferred shares to his client in late July 2008 and within 45 days the company was in conservatorship and their investment was virtually wiped out. The award is notable for its size and is believed to be the largest Fannie Mae preferred recovery for any public investors. Merrill Lynch vigorously defended the case, The FINRA arbitration panel that Merrill Lynch breached its fiduciary duties to their clients.

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Jeff Misner and Karen Misner, as Trustees of the Jeff and Karen Misner Revocable Trust v. UBS Financial Services, Inc.

Erez Law represented Jeff and Karen Misner against UBS and recovered $1,342,118. The case stems from the sale by UBS to the Misners of its proprietary YES investment strategy. UBS promoted and marketed YES as a low-risk options overlay strategy that would generate additional income. In fact, YES was a high-risk, directional and aggressive iron condor strategy that failed. The award is significant because the arbitrators awarded the Misners their losses as well as prejudgment interest in the amount of $475,482. The panel also awarded all costs in the amount of $41,475 and attorney’s fees of $325,161. Moreover, the panel awarded punitive damages of $500,000. The venue of the case was Atlanta, Georgia.

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SETTLEMENT

$1,250,000 recovery in an NASD arbitration

$1,250,000 recovery in an NASD arbitration for an investor, alleging fraudulent recommendations using stop-losses.

CASE NO. 20-03990

Rick McCormick, Pamela McCormick and the Lindsay McCormick 2013 Gift Trust v UBS Financial Services, Inc.

Erez Law represented Rick McCormick, Pamela McCormick and the Lindsay McCormick 2013 Gift Trust against UBS and recovered $1.1M. The case stems from the sale by UBS to the McCormicks of its proprietary YES investment strategy. UBS promoted and marketed YES as a low risk options overlay strategy that would generate additional income. In fact, YES was a high risk, directional and aggressive iron condor strategy that failed. The panel awarded $900,000 in compensatory damages, $56,717 in costs and $225,000 in attorney’s fees. In total, the panel awarded nearly 100% of our clients’ losses.

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CASE NO. 08-01465

Cobb vs. Morgan Keegan & Co. (FINRA)

The Firm obtained a $1.1 million dollar verdict against Morgan Keegan, in a case alleging securities fraud over the sale of Morgan Keegan closed-end and open-end mutual funds, known as RMK Mult-Sector High Income Fund (RHY), RMK Advantage Income Fund (RMA), RMK Select High Income (MKHIX), RMK High Income Fund (RMH), RMK Strategic Income Fund (RSF). The verdict and subsequent recovered amounted to 80% of the investor’s net losses.

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CASE NO. 08-03677

Miniaci et al vs. Morgan Keegan & Co.

The Firm obtained a $1,080,00 million dollar verdict against Morgan Keegan, in a case alleging securities fraud over the sale of Morgan Keegan mutual funds. The verdict and subsequent recovery amounted to 100% of the investor’s net losses.

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CASE NO. 14-01450

WRI Vending Machines, Inc. v. Santander Securities, LLC and Oriental Financial Services Corp.

Erez Law obtained an award against Oriental Financial Services Corp. (“Oriental”) for $1,046,556. The claim against Santander Securities., LLC was settled prior to the commencement of the final hearing. The case involved a claim by an investor against Oriental related to the recommended use of margin to invest in Puerto Rico bonds and agency bonds. The unsuitable and speculative investment strategy led to margin calls and forced liquidations in 2013. The case is notable for the arbitrators’ award of attorney’s fees, costs and interest which were damages sought under the Puerto Rico Uniform Securities Act.

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