NEW YORK, Feb. 7 /PRNewswire/ — The Securities Law Firm of Klayman & Toskes, P.A. (“K&T”)(http://www.nasd-law.com) announced today that it continues to investigate sales of collateralized debt obligations (CDOs) from Merrill Lynch (NYSE: MER) and UBS (NYSE: UBS) to institutional investors. These firms sold billions of dollars in CDOs to investors around the world. Some of the CDOs which sustained heavy losses include Norma CDO I, Centre Square CDO, South Coast Funding V CDO, Mezzanine ABS CDO, and the Tabs CDO.
Earlier this week, federal prosecutors and the SEC stated that they were looking into whether Wall Street brokerage firms, like Merrill Lynch and UBS, “deliberately misvalued, or ‘mismarked,’ massive holdings of mortgage securities.” Further, the U.S. Justice Department is looking into whether brokerage firms committed fraud in their “originating, packaging and selling mortgage-related products.”
Presently, K&T is investigating how Merrill Lynch and UBS marketed their CDO products, and whether the brokerage firms properly disclosed the risks of the products to its investors. The issue of whether Merrill Lynch and UBS over-stated and inflated the value of their CDO products is rapidly becoming a common theme in the investigation. Further, K&T is looking into whether the CDOs were suitable for the institutions, municipalities, fund of funds, and pension funds that invested in the products through Merrill Lynch and UBS.
K&T has already filed numerous arbitration claims on behalf of investors who lost millions in the CDO market. If you are an investor in CDOs that were packaged and/or underwritten by Merrill Lynch and UBS, or if you have information relevant to our investigation, please contact Lawrence L. Klayman, Esquire or Steven D. Toskes, Esquire of Klayman & Toskes, P.A., at 888-997- 9956. You may also visit us on the web at http://www.nasd-law.com.
Klayman & Toskes, P.A., an experienced and nationally recognized securities litigation law firm, continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.