The Securities Law Firm of Tramont Guerra & Nez, PA (TGN) announces the recent filing of a multi-million dollar securities arbitration claim with the Financial Industry Regulatory Authority (FINRA), Case No. 09-02765, against Smith Barney a division of Citigroup Global Markets, Inc. (Citigroup).
The securities arbitration claim alleges an unsuitable concentration in Citigroup stock and the recommendation of unsuitable option transactions for the concentrated stock position. While the financial banking system collapsed, the value of the concentrated stock position declined in excess of USD2.5 million, during which time Citigroup gave no advice to mitigate risk and damages to the Claimant.
The only advice Citigroup and its representative gave to the Claimants was the continued reassurances to maintain exposure to the banking and financial services sector. The securities arbitration claim arises from sales practice rule violations, as set forth by the Financial Industry Regulatory Authority (FINRA).
The FINRA sales practice rules and regulations are promulgated through member firm internal compliance procedures which are established to protect investors from investment losses that are the direct result of the violation of these rules. In this instance, the claimants did not understand the risks associated with securities concentration in the banking and financial sector of the economy.
Citigroup is required to supervise the handling of client accounts to assure compliance with internal procedures. This arbitration claim filed with FINRA seeks to recover losses stemming from the violation of these FINRA sales practice rules and regulations. Recommendations of unsuitable investment strategies and/or concentrated investments in the financial sector are both causes of action that form the basis for individual securities arbitration claims filed with FINRA.
The Securities Law Firm of Tramont Guerra & Nez, PA, is Martindale Hubbell AV rated securities law firm.
L.D.