Recovery of Losses in Wirecard Bonds

Investor Alerts Attorney Jared Levy July 1, 2020

Shares of Wirecard – a German payment processor company – recently crashed after nearly $2 billion in cash on its balance sheet allegedly does not exist. Wirecard’s CEO also was recently arrested. And now it has come to light that Credit Suisse allegedly sold about $1 billion in convertible bonds from Wirecard after entering into a strategic partnership with it in September 2019, according to reports. Those bonds now trade for 12% of face value. While investors in the bonds have suffered huge losses, Credit Suisse allegedly has limited exposure.

Credit Suisse allegedly made the convertible-bond sales around the same time that claims of accounting misconduct were being leveled at Wirecard. The sales may have helped Wirecard survive for longer than it should have, as it brought in a last infusion of cash before the company became undone.

In addition to the convertible bonds, Credit Suisse allegedly aimed to structure a transaction that would transfer Wildcard’s credit risks to third-party investors. Credit Suisse ran the deal through a Dutch company it operates, Argentum Netherlands BV. The Argentum bonds then were sold to investors.

If you purchased any Wirecard bonds, you may have legal claims against Credit Suisse, Argentum, or any financial advisor who recommended buying the bonds. Please contact one of our Business Trial Group attorneys at 800-816-1031 to further discuss your claims.

Morgan & Morgan’s Business Trial Group is part of the largest contingency law firm in the nation, with more than 500 lawyers and 50 offices. We regularly battle against brokerage firms, investment advisory firms, and banks, and have helped investors recover tens of millions of dollars of investment losses.

The Business Trial Group will never charge hourly fees or expensive retainers. We are only paid if we successfully recover money for you.

Recovery of Substantial Losses in Wirecard Stock

Investor Alerts Attorney Jared Levy June 22, 2020

Shares of Wirecard – a German payment processor company that trades under the stock symbol WDI – recently plummeted by over 60 percent after Wirecard’s auditor alleged that it can’t find any evidence for a quarter of the company’s cash on its balance sheet.

Specifically, Ernst & Young stated that it didn’t have sufficient evidence for $1.9 billion euros that Wirecard’s balance sheet reflected were held in cash. This comes after the Financial Times alleged in October 2019 that Wirecard appeared to have inflated sales and profits at subsidiaries.

If your financial advisor over-concentrated your investments in Wirecard shares, or if you have suffered substantial losses in Wirecard stock, you may have legal claims against your advisor who recommended buying or holding the Wirecard positions. Please contact one of our Business Trial Group attorneys at 800-816-1031 to further discuss your claims

The Business Trial Group at Morgan & Morgan will never charge hourly fees or expensive retainers. We are only paid if we successfully recover money for you.

The Business Trial Group is part of the largest contingency law firm in the nation, with more than 500 lawyers and 50 offices. We regularly battle against brokerage firms, investment advisory firms, and banks, and have helped investors recover tens of millions of dollars of investment losses.

SEC Awards Record $50 Million to Whistleblower

Investor Alerts Attorney Jared Levy June 9, 2020

The Securities and Exchange Commission recently announced a record whistleblower award of almost $50 million. The whistleblower received the award after providing a detailed account of a company’s misconduct, which led the SEC to bring an enforcement action. The SEC ultimately was able to return substantial amounts to harmed investors.

The $50 million whistleblower award is the largest amount that the SEC has ever paid to one person under its whistleblower program.

Jane Norberg, chief of the SEC’s Office of the Whistleblower, stated: “This award marks several milestones for the whistleblower program. This award is the largest individual whistleblower award announced by the SEC since the inception of the program, and brings the total awarded to whistleblowers by the SEC to over $500 million, including over $100 million in this fiscal year alone. Whistleblowers have proven to be a critical tool in the enforcement arsenal to combat fraud and protect investors.”

Whistleblowers may receive an award when they provide the SEC with original, timely, and credible information that results in a successful enforcement action. Whistleblower awards typically range from 10 percent to 30 percent of collected sanctions. The SEC makes all whistleblower payments from an investor protection fund – which is financed through sanctions paid by securities law violators.

The Dodd-Frank Act requires the SEC to protect whistleblowers’ identities.

Please contact one of our Business Trial Group attorneys at 800-816-1031 if you have information of securities fraud that you believe the SEC may be interested in prosecuting. We regularly help tipsters navigate through the whistleblower process.

The Business Trial Group at Morgan & Morgan will never charge hourly fees or expensive retainers. We are only paid if we successfully recover money for you.

Business Trial Group Investigates Investment Losses in UBS’s Yield Enhancement Strategy

Investor Alerts Attorney Jared Levy May 19, 2020

Morgan & Morgan’s securities attorneys are investigating investment losses in UBS Wealth Management’s Yield Enhancement Strategy (YES).

UBS marketed YES as a conservative, market-neutral strategy and bond-portfolio enhancer. UBS told investors that YES would use a hedged, “iron condor” options strategy. According to UBS, this strategy would generate consistent income while limiting risks to the premiums paid, even if markets turned bearish. UBS represented to investors that YES would limit exposure to substantial market moves (up or down), and use protective options strategies to prepare for any unexpected volatility or market downturns. Essentially, UBS sold YES as a strategy that would generate modest returns in both bull and bear markets, with limited risk.

But in reality, YES used high-risk leverage to trade options and make speculative bets that markets would remain calm and not turn volatile. Most investors were unaware that YES offered relatively low upside with huge downside.

YES investments suffered significant losses in late 2018 when the markets became volatile, losing about 18% for the year (by contrast, the S&P 500 lost about 4% that same year). In 2019, YES suffered losses of 2%, while the S&P 500 gained over 31%. And YES again sustained substantial losses in February and March 2020, when market volatility returned amidst the coronavirus pandemic.

At their peak, YES investment holdings totaled about $6 billion in mid 2018. UBS, however, may have charged excessive fees relating to YES investments.

If you have suffered losses in YES investments sold by UBS, we are here to help. Contact us at (888) 251-2668 today to speak with an experienced securities attorney at Morgan & Morgan’s Business Trial Group.

The Business Trial Group at Morgan & Morgan helps investors recover their losses on a contingency basis. We are only paid if we successfully recover money for you. We have helped investors recover tens of millions of dollars of investment losses.

The Business Trial Group is part of the largest contingency law firm in the nation, with more than 500 lawyers and 50 offices. We aggressively fight for justice against brokerage firms, investment advisory firms, and banks.