US: law firm drums up business for class action

A press release headed "Carey & Danis, LLC: New Security Litigation Fraud" has hit our newsdesk. It looked important so we read it.

The headline is misleading: there is no finding of any fraud by any of the institutions it refers to. Indeed, once the headline has grabbed attention, the first line of the release backs down from that absolute statement by the insertion of "alleged." Then in the second paragraph, the release shows that the "evidence" for the case is that well known and authoritative (sarcasm) the American press.

We reproduce the entire release so you can see how business is drummed up by inflammatory language in this modern form of ambulance chasing - but here chasing the ambulance before it even has a patient in it.

Carey & Danis, LLC is investigating alleged securities fraud in connection with the sale of AUCTION RATE SECURITIES by a number of major broker-dealers, including UBS, Citigroup/Smith Barney, Wachovia, Merrill Lynch, Wells Fargo, Morgan Stanley, J.P. Morgan Chase and TD Ameritrade, among others. The issuers of the AUCTION RATE SECURITIES include Blackrock, Eaton Vance, Nuveen, Legg Mason and ING.

According to recent news articles, the broker-dealers and issuers materially misrepresented the liquidity and risks of the AUCTION RATE SECURITIES to individual investors and corporations by labeling these securities as "cash equivalents," in press releases, monthly account statements, individual communications with investors, and other investment guidance material. In fact, the promised liquidity of the AUCTION RATE SECURITIES was created through artificial intervention in the auctions by the broker-dealers -- in other words, the broker-dealers purchased their own AUCTION RATE SECURITIES in order to keep the market running smoothly.

In the past month, the market for AUCTION RATE SECURITIES has collapsed, as all of the major broker-dealers have announced that they will no longer purchase AUCTION RATE SECURITIES for their own accounts to ensure that the auctions do not fail and that the securities remain liquid. In the past month, thousands of auctions run by the broker-dealers failed. As a result, over $350 billion in AUCTION RATE SECURITIES that were once offered, as "cash equivalents" are now illiquid, resulting in economic losses and severe hardships for investors. Some broker-dealers, including UBS and Goldman Sachs Group, have been sending investors brokerage statements noting that the AUCTION RATE SECURITIES have been marked down in value.

For more detail, link to http://www.foxbusiness.com/markets/market- overview/article/auctionrate-warnings-fell-deaf-ears_511863_42.html

If you are an investor who has purchased or owns AUCTION RATE SECURITIES, and you have information or wish to discuss your rights as an investor, please contact Joseph P. Danis, Esq. (jdanis@careydanis.com), Michael J. Flannery, Esq. (mflannery@careydanis.com), or Corey Sullivan (csullivan@careydanis.com) toll free at (800) 721-2519.

Carey & Danis, LLC -- a national litigation firm specializing in consumer class actions, securities and complex business litigation, and mass tort litigation -- is dedicated to representing all victims of corporate fraud, abuse and neglect. From its inception in 1995, the firm has played a leading role in numerous high-profile class action and mass tort cases. We have successfully litigated cases against some of the country's largest corporations. Carey & Danis, L.L.C. has been joined by many hard-working lawyers who, like the founders John Carey and Joey Danis, have made a professional and moral decision to represent victims rather than abusers. Our lawyers and staff handle a wide variety of legal matters with one goal in mind: vindicating your rights. In recent years, we have been involved in some of the nation's largest mass tort cases, including the fen-phen diet drug litigation, Vioxx, Trayslol, Rezulin, Baycol, and many others. We are also leading lawyers in class actions against Microsoft, Goodyear, the insurance industry, the telecommunications industry, and the pharmaceutical industry, to name a few. We also handle cases involving nursing home abuse, personal injury and consumer fraud. If you have been wronged, we can help. You can learn more about our cases and settlements by visiting our website at http://www.careydanis.com/ and following the link to "cases." Or to hear what our clients have said about us, go to our website http://www.careydanis.com/ and follow the link to "testimonials." Our firm is also frequently in the news and you can read about the firm's work by going to our website http://www.careydanis.com/ and following the link to "news." We have offices in St. Louis, Chicago, and Godfrey Illinois. We look forward to hearing from you.

Privacy Policy: Carey & Danis, LLC maintains the privacy of your message. We do not transfer your personal information, including your email address, to any third party. Information you provide will be used solely for informational purposes to assist in our case investigations.

Source: Carey & Danis, LLC