MBIA Insurance Files Lawsuit Against Wall Street Banks for Misconduct Resulting in Losses Over $1B
SAN JUAN, PUERTO RICO – August 2o, 2019 – (GLOBE NEWSWIRE – HISPANICIZE WIRE) – Bond insurer MBIA Insurance Corporation, along with its unit National Public Finance Guarantee Corporation, filed a lawsuit last week in superior court in San Juan against eight Wall Street banks, seeking to recover at least $720 million from these banks for their “inequitable conduct” in Puerto Rico’s bond market that “inflicted a financial tragedy” on the Commonwealth of Puerto Rico, contributing to the island’s subsequent “economic collapse.” According to the lawsuit, these banks, as underwriters and sellers of the bonds insured by MBIA, had “gatekeeper” duties to utilize appropriate due diligence standards and processes to assure the market that the debt being issued could be repaid in accordance with the terms it was issued. However, as claimed by MBIA and several other individual and institutional customers, these banks failed to conduct themselves appropriately and adequately perform their responsibilities. Lawyers with Shepherd, Smith, Edwards & Kantas (SSEK Law Firm) continue to file claims on behalf of investors who were customers of these financial institutions and suffered significant financial losses as a result of the banks’ misconduct and lack of due diligence. The following banks are named as defendants in MBIA’s lawsuit:
- UBS Financial Services, Inc.
- UBS Securities, LLC
- Citigroup Global Markets, Inc.
- Goldman Sachs & Co., LLC
- J.P. Morgan Securities, LLC
- Morgan Stanley & Co., LLC
- Merrill Lynch, Pierce, Fenner & Smith, Inc.
- RBC Capital Markets, LLC
- Santander Securities, LLC
The debt burden and financial upheaval created for MBIA along with numerous customers of these banks when these Puerto Rico bonds collapsed has been staggering, causing significant disruption and financial distress. One of the most successful tools for investors to recover their investment losses and regain control over their financial futures has been to file a claim against the financial institutions responsible for recommending investments in Puerto Rico. If you or someone you know invested in Puerto Rican bonds and suffered losses, please contact Shepherd, Smith, Edwards & Kantas, LLP today for a free, confidential evaluation of your situation. We have a team of attorneys, consultants, and staff with over 100 years of combined experience in the securities industry and in securities law that are ready to assist you in recovering your investment losses today.