A FINRA arbitration panel ordered UBS AG on Tuesday to pay $81 million in damages to a Bethesda, Maryland-based cellphone marketer that purchased auction-rate securities through the U.S. brokerage.
FINRA documents posted online showed a panel comprised of three public arbitrators ordered to pay the damages to Kajeet Inc, which purchased student-loan auction-rate securities that lost value during the credit crisis.
Kajeet, which sells pay-as-you-go cell phones aimed at children, had claimed $110 million in losses.
State and federal regulators have forced UBS to repurchase $22.7 billion of auction rates from individual investors. The Securities and Exchange Commission continues to investigate the role of individual executives at the firm.
In March, UBS agreed with a coalition of state securities regulators to purchase up to $200 million in auction-rates from investors not covered by the initial agreement.
SEC (Securities and Exchange Commission) lawyers specialize in navigating the complex regulatory landscape of securities law in the United States. These legal professionals play a crucial role in ensuring that companies comply with federal securities regulations, which are designed to protect investors and maintain the integrity of financial markets.
An SEC lawyer’s responsibilities include advising clients on matters related to securities offerings, mergers and acquisitions, corporate governance, and compliance with SEC rules. They also represent clients in investigations and enforcement actions brought by the SEC, where they defend against allegations of securities fraud, insider trading, and other violations.
Due to the high stakes involved, SEC lawyers must possess a deep understanding of financial regulations, as well as the ability to analyze and interpret complex legal documents. They often work with corporations, financial institutions, investment advisers, and public companies to ensure that all transactions and disclosures are in line with SEC requirements.
In addition to their advisory role, SEC lawyers are also involved in litigation, representing clients in court or in administrative proceedings. Their expertise is critical in helping businesses avoid costly penalties and reputational damage, making them indispensable in the financial and corporate sectors.