Baldwin Law Group (now Baldwin Mader Law Group) is currently handling a number of cases involving auction rate securities (“ARS”) on behalf of individual investors who were falsely told by broker–dealer registered representatives that ARS were safe, liquid and the equivalent of money market funds and or cash. Registered representatives erroneously assumed and represented that ARS were the equivalent of money market funds and in many instances simply did not know what they were selling to clients. In some instances, registered representatives told clients they were purchasing AAA bonds with 7 day maturities. In response to filed claims, broker-dealers argue that ARS auction failures are an unprecedented and unforeseeable event thus absolving the firms of liability. The position that the failed auctions were unprecedented is highly questionable. By mid-September 2007 there had been failed ARS auctions, yet sales of ARS took place in December 2007 and January 2008 without disclosure of these failed auctions.

If you have any questions concerning Auction Rate Securities, please contact us toll-free at (888) 326-8191.