On April 9, 2009, Stifel Nicolaus & Co. announced that they had planned to repurchase their clients’ auction rate securities (ARS).  Unfortunately, for their customers, the repurchase will not be completed for more than three years. Furthermore, the settlement does not require Stifel to repurchase any ARS for more than 14 months.  The terms of the settlement, if accepted, provides that Stifel will repurchase its customers’ ARS on the following schedule:

  • The greater of 10% or $25,000 to be completed by June 30, 2010;
  • The greater of 10% or $25,000 to be completed by June 30, 2011;
  • The balance of outstanding ARS to be repurchased by June 30, 2012.

Stifel Nicolaus is a defendant in a class action lawsuit related to its sale of ARS to customers.  In addition, the Missouri Secretary of State and Attorney General filed a civil action against Stifel for its sale of ARS to customers.  

If you were sold ARS by Stifel Nicolaus, you should contact an attorney to discuss how this settlement, and the pending lawsuits impact your rights.  The Kueser Law Firm represents investors who have been defrauded by financial advisors, stockbrokers, banks, and other investment professionals.  

Because of the significant impact this settlement may have on your financial situation, if you do not contact The Kueser Law Firm, you should contact an attorney to discuss your rights.

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