NEW YORK, July 11, 2012 (GLOBE NEWSWIRE) -- The Securities Arbitration Law Firm of Klayman & Toskes ("K&T"), www.nasd-law.com, announced today that it filed a securities arbitration claim against Merrill Lynch, a division of Bank of America (NYSE:BAC), on behalf of an 81 year old retiree who sustained losses of about $350,000 in Fannie Mae preferred stock. The claim was filed with the Financial Industry Regulatory Authority (FINRA) Arbitration Department.
According to the Claim, the Claimant called his Merrill Lynch advisor in December 2007 because he was looking to invest cash he had received from the sale of a business. In response, the Merrill Lynch advisor recommended that he purchase preferred shares of Fannie Mae. Prior to making this investment, the Claimant had no knowledge of Fannie Mae or its business. The Merrill Lynch advisor represented that the investment was a "sure bet" and he "could not lose" because the security was backed by the U.S. Government and underwritten by Merrill Lynch. The Claimant did not understand the risk of investing in preferred stock, and was simply advised that preferred stock was very secure. In total, about $350,000 was invested in Fannie Mae. Because his Merrill Lynch advisor had stated that the Fannie Mae securities were backed by the U.S. Government and underwritten by Merrill Lynch, the Claimant felt confident that he was investing in a sound product.
Unfortunately, the Merrill Lynch advisor misrepresented the risks associated with investing in Fannie Mae preferred stock. Moreover, the representation that the preferred stock was government backed was not accurate. When the price of the Fannie Mae preferred stock plummeted in 2008, the Claimant's investment in the stock was virtually wiped out. As the Claimant had sought conservative investments to provide him with sufficient retirement income, he lost confidence in Merrill Lynch and began transferring his assets to other brokerage firms.
Investors who sustained losses in Fannie Mae or Freddie Mac preferred stock can contact K&T to explore their legal rights and options. The attorneys at K&T are dedicated to pursuing claims on behalf of investors who have suffered significant investment losses. K&T, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.
If you wish to discuss this announcement, or lost $100,000 or more in Fannie Mae or Freddie Mac preferred stock, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956 or visit us on the web at http://www.nasd-law.com
CONTACT: Steven D. Toskes, Esquire Jahan K. Manasseh, Esquire Klayman & Toskes, P.A. 888-997-9956 http://www.nasd-law.com