Defrauded Investors Given Hope of Recovery As Morgan Keegan Parent Settles Regulatory Charges for $210 Million

Block & Landsman by Block & Landsman

Nearly 40,000 investors who lost $1.5 billion in fraudulent subprime mortgage-backed mutual funds were given a small boost in their claims for recovery as the parent company of investment banking firm Morgan Keegan & Co., Regions Financial Corp., agreed to pay $210 million to settle regulatory charges targeting its subprime mortgage mutual funds. The Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA) and several state securities agencies brought charges against Morgan Keegan relating to its mana...Read More

Supreme Court Widens Gap Between Investor Protection and SEC Enforcement

Block & Landsman by Block & Landsman

Is punishment an acceptable replacement for reparation? Is it sufficient fidelity to the securities laws for participants in a fraud to be prosecuted but not held accountable to the victims of their criminal behavior? According to the U.S. Supreme Court, the unfortunate answer is yes. In a 5-4 decision handed down on June 14, 2011, the Court held that mutual fund investors do not have a right of action under Rule 10b-5 to parties other than the issuer for fraudulent disclosures of risk. The decision does mean that the other participants have...Read More

Class Action Lawsuit Filed Against FINRA for Violating Brokers’ Constitutional Due Process Rights

Block & Landsman by Block & Landsman

Block & Landsman joined other firms in filing a class action lawsuit against the Financial Industry Regulatory Authority (FINRA) seeking injunctive relief to stop the regulatory authority from violating the constitutional due process rights of registered representatives. Specifically, FINRA Rule 3010(b)(2), known as the Taping Rule, requires brokerage firms to establish special supervisory procedures, including the tape recording of broker conversations, when they employ more than a specified percentage of representatives who were previo...Read More

Block & Landsman Wins $5 Million FINRA Arbitration Award for Lehman Structured Notes Investments

Block & Landsman by Block & Landsman

A FINRA arbitration panel awarded damages in excess of $5,052,500 against Neuberger Berman and it's broker Brian Hahn in connection with the sale of Lehman Brothers Structured Notes to three customers. The investors were represented by Block & Landsman and The Law Firm of Nicholas P. Iavarone. In the summer of 2008, Neuberger Berman wealth manager Brian Hahn solicited the customers to invest in the comBATS and XLF Lehman Brothers Structured Notes. The customers were all told that the principle of the structured notes were either fully ...Read More