Investor Wins Auction-Rate Securities Case Against Credit Suisse Securities
A Financial Industry Regulatory Authority arbitration panel has ordered Credit Suisse Securities to pay an institutional investor - Catalyst Health Solutions - $9.8 million in a case tied to auction-rate securities backed by student loans.
Credit Suisse Securities is the U.S. broker/dealer unit of Credit Suisse Group. Catalyst Health Solutions is a Rockville, Md., company that manages prescription drug benefits. Catalyst filed its case last year, accusing Credit Suisse of fraud, negligence and selling unsuitable investments.
For the past two years, retail and institutional investors have been waging legal wars against Wall Street over auction-rate securities. The problems began in February 2008 when the $330 billion ARS market abruptly came to a standstill, leaving investors who thought their money was as liquid and safe as cash in severe financial straits.
Following investigations by state and federal regulators, a number of Wall Street firms agreed to buy back ARS holdings from retail clients. The majority of institutional investors, however, were left of the equation.
Our affiliation of lawyers is actively involved in advising individual and institutional investors in evaluating their legal options when confronted with subprime and other mortgage-related investment losses.
