Embattled broker/dealer Securities America was handed a legal victory today when a federal judge decided to combine private-placement claims involving Medical Capital Holdings and Provident Royalties with two class actions.
As reported Feb. 18 by Investment News, Judge W. Royal Furgeson Jr. ordered Securities America to create a $21 million settlement fund for investors who are suing the broker/dealer in the two class actions. The ruling is seen as a victory for Securities America because it limits the company’s liability in the private-placement arbitration cases.
Securities America, which is owned by Ameriprise Financial Inc., sold about $700 million of private placements issued by Medical Capital Holdings and $18 million of shares in Provident Royalties.
Judge Furgeson has placed a temporary restraining order on three Financial Industry Regulatory Authority (FINRA) claims against Securities America. The investors who’ve filed those claims are seeking $4.8 million in damages for buying private placements issued by Medical Capital and Provident, both of which were sued by the Securities and Exchange Commission (SEC) for fraud in July 2009.
If you have suffered investment losses in Securities America and wish to discuss filing an individual arbitration claim with FINRA or have questions about these investments, pleasecontact us.