NEW YORK, June 20, 2012 (GLOBE NEWSWIRE) -- The Securities Arbitration Law Firm of Klayman & Toskes ("K&T"), www.nasd-law.com, announced today that it filed a securities arbitration claim against Banc of America (NYSE:BAC) n/k/a Merrill Lynch on behalf of an investor who sustained losses of about $100,000 in Freddie Mac preferred stock. The claim was filed with the Financial Industry Regulatory Authority (FINRA) Arbitration Department.
According to the Claim, the Claimant, an unsophisticated investor, received unsuitable investment advice and misrepresentations from Banc of America and its financial advisor in connection with the recommendation to invest in Freddie Mac preferred stock. Prior to making the investment, the Claimant had his savings invested in a money market earning close to and at times over 5% while he was caring for his ill mother and saving for a home. His Banc of America advisor represented to the Claimant that he could earn a better return without any risk by investing in Freddie Mac preferred stock. The advisor specifically represented that the stock was backed by the U.S. Government. Moreover, the advisor concentrated all of the Claimant's account in Freddie Mac.
Following the advisor's recommendations, the Claimant lost approximately $100,000 which was supposed to be invested in risk free investments. According to the claim, the Banc of America advisor misrepresented the risk of Freddie Mac and thereafter used the Claimant's lack of sophistication to keep him from selling and realizing a loss.
Investors who sustained losses in Freddie Mac or Fannie Mae preferred stock 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 significant 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 lost $100,000 or more in Freddie Mac or Fannie Mae preferred stock, 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: Klayman & Toskes P.A. 888-997-9956