Securities America Posts $115M Loss
Ongoing legal battles and arbitration claim losses over private placements in Medical Capital Holdings and Provident Royalties have cost Securities America dearly. The broker/dealer just posted a $115 million loss in the first quarter.
The news follows a recent announcement that parent company Ameriprise Financial is looking to sell the embattled broker/dealer.
For the quarter, Securities America posted $237 million in expenses – a 114% increase over the $111 million in expenses it reported one year ago. The majority of the increase is the result of legal expenses for investor lawsuits in private placement sales in Medical Capital and Provident. Earlier this month, Ameriprise offered a settlement of nearly $160 million to Securities America clients.