UBS served with arbitration claim over Lehman notes
UBS has been served with an arbitration claim by a Florida law firm on behalf of an elementary school teacher, who lost over US$100,000 purchasing Lehman principal protected notes from the bank's brokerage arm.
The investor was looking for a secure investment in which to place her inheritance, says Vernon Healy, the law firm which has filed the arbitration. Her adviser at UBS concentrated 95% of her funds in index-linked Lehman-backed structured products, says the firm, and her broker assured that the investment was well-diversified owing to the variety of indexes in the underlying portfolio.
Neither the true nature of the securities or their subsequent risks were adequately disclosed to the investor
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