Published on:

Don’t Limit Your Recovery If You Are a Owner Of Lehman Principal Protected Notes

On January 25, 2011, Lehman Brothers Holdings Inc. (“Lehman”) and its affiliates (collectively the “Debtors”) filed an Amended Plan and Disclosure Statement which included, among other things, the Debtors’ estimate of the percentage of recovery for Lehman’s senior note holders. According to the Disclosure Statement, investors with “Senior Unsecured Claims” in the Lehman bankruptcy are expected to recover 21.4% of the allowed amount of their claims. The estimated recovery percentage will be reduced to 17% if the requisite percentage of investors does not vote to accept the Amended Plan.

What does this mean for investors of principal protected notes issued by Lehman and sold by other brokerage firms, such as UBS Financial Services, Inc. (“UBS”)? UBS was a major seller, distributor, underwriter and marketer of hundreds of millions dollars of Lehman Principal Protected Notes. You are still able to file an arbitration claim against the brokerage firm, such as UBS, which sold you the principal protected notes based on misrepresentations made to you in connection with the sale of those notes. Our firm represents numerous investors in arbitrations against brokerage firms, such as UBS, which sold these notes and you should not limit your recovery to the amount you will ultimately receive in the Lehman bankruptcy. Please contact us today if you have invested in any structured notes issued by Lehman.

For more on this issue see “Several FINRA Arbitration Panels Find in Favor of Investors in Lehman Brothers Principal Protected Structured Notes.”