(Source: MARKETWIRE)
The Securities Law Firm of Klayman & Toskes, P.A. ("K&T"),
www.nasd-law.com, announced today that a class action lawsuit, Case
No. 8:09-cv-01084, has been filed against Ameriprise Financial (NYSE:
AMP) and its broker-dealer subsidiary Securities America, as well as
Cullum & Burks Securities and CapWest Securities, on behalf of
investors who purchased or otherwise acquired notes of Medical
Provider Financial Corp. III, Medical Provider Financial Corp. IV,
Medical Provider Funding Corp. V and Medical Provider Funding Corp.
VI (collectively referred to as "Medical Capital notes") from
Securities America, CapWest Securities and/or Cullum & Burks.
Potential class members who purchased Medical Capital notes from
Securities America, CapWest Securities or Cullum & Burks should
consider whether they should participate in the class action or file
an individual securities arbitration claim.
The Complaint alleges that "Cullum & Burks, Securities America,
CapWest Securities and their affiliates did not make a reasonable
investigation or possess reasonable grounds to believe that the
statements contained and incorporated by reference in the [Private
Placement Memoranda] at the time of the MedCap Entities' offerings
were true and without omissions of material fact and were not
misleading. Had Defendants Cullum & Burks, Securities America,
CapWest Securities and their affiliates exercised reasonable care,
they would have known of such omissions." Under NASD Rules,
brokerage firms have an obligation to make suitable recommendations
to their customers and to conduct adequate due diligence of new
products before they are sold to their customers.
FINRA has provided guidance concerning the kinds of questions which
should be asked by a brokerage firm before offering a new product, and
it has highlighted best practices for reviewing new products.
Specifically, FINRA has stressed the need for firms to take a
proactive approach in reviewing and improving their procedures for
developing and vetting new products. Those procedures should include
straightforward guidelines for determining what constitutes a new
product, ensure that the proper questions are asked and answered
before a new product is offered for sale, and provide for
post-approval follow-up and review.
K&T reminds investors of the benefits of filing an individual
securities arbitration claim, as opposed to participating in a class
action lawsuit. By participating in a class action lawsuit, an
investor will most likely recover only pennies on the dollar.
However, if one has experienced significant losses in Medical Capital
notes, it may be more beneficial for them to file an individual
securities arbitration claim. In 2003, K&T conducted a detailed
study of securities arbitration versus class action. The study
concluded that investors who file a securities arbitration claim
traditionally obtain an overall higher rate of recovery as opposed to
participating in a class action lawsuit. To view the full results of
the comparison, please visit our web-site:
http://www.nasd-law.com/documents/classvr.pdf
Retail and institutional investors who purchased Medical Capital
notes from a full-service brokerage firm and sustained significant
losses 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 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 have investment losses of
$200,000 or more in Medical Capital notes, 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
SOURCE: Klayman & Toskes
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