NEW YORK--(BUSINESS WIRE)--KlaymanToskes (“KT”), www.klaymantoskes.com, announces an investigation into UBS ETRACS ETNs: (NYSE Arca:WTIU, HOML, MLPZ, SMHD, BDCL, HDLV, LBDC, LMLP, MORL, MRRL, and DVHL). These exchange traded notes (“ETNs”) all suffered significant declines along with the fall of the market due to COVID-19. These products were created by UBS and may have been marketed and sold to UBS customers who were risk averse, such as retirees or other conservative investors, that were seeking income and capital preservation and were not explained the potential risks.
As of March 24, 2020, UBS announced that it would suspend further sales of the WTIU and that outstanding shares would be redeemed by UBS on April 9, 2020. UBS has already had three other ETNs undergo mandatory redemptions: HOML, MLPZ, and SMHD, with the announcement of seven additional mandatory redemptions less than one week later: BDCL, HDLV, LBDC, LMLP, MORL, MRRL, and DVHL. These funds all employed leverage and were invested in risky sectors. Investors may seek damages for violations of sales practice rules and regulations, as set forth by the Financial Industry Regulatory Authority (FINRA) in arbitration. However, if you invest with E-Trade, TD Ameritrade, Charles Schwab, Fidelity, or Interactive Brokers or made self-directed trades, this investigation does not apply to you.
The sole purpose of this release is to investigate whether strategies deployed by UBS were suitable for investors in these ETRACS ETNs. Investors who hold accounts at UBS, and have information relating to the manner in which the firm handled their portfolios, are encouraged to contact the attorneys of KlaymanToskes at (561) 542-5131, or visit our firm’s website at www.klaymantoskes.com.
KT is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation, on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm represents high net-worth, ultra-high-net-worth, and institutional investors, such as non-profit organizations, unions, public and multi-employer pension funds. KT has office locations in California, Florida, New York, and Puerto Rico.