June 7, 2010
Institutional Investors Win Again in Auction Rate Securities Case
Luby’s Restaurants Wins Full Repayment From Top Wall Street Firm
Second Consecutive Case with Saber Partners, LLC as Expert Advisor to the Successful Investor
(NEW YORK–(BUSINESS WIRE)–An independent panel of arbitrators from the Financial Industry Regulatory Authority (“FINRA”) decided in favor of an institutional investor and found Credit Suisse liable for its actions in the selling to Luby’s Restaurants certain municipal auction rate securities (“ARS”) during the 2007-2008 financial crisis. The panel ordered repayment to Luby’s Restaurants at 100 cents on the dollar. The auctions for Luby’s investments purchased from Credit Suisse began to fail in February 2008 and the prices declined precipitously. See http://restaurantnews.com/finra-orders-credit-suisse-securities-usa-llc-to-buy-back-auction-rate-securities-from-lubys-inc/.
This is only the second victory for an institutional investor in auction rate securities after a string of disappointing decisions by arbitrators and judges. In both successful cases, The Westervelt Company and Luby’s Restaurants, the investor and its counsel chose Saber Partners, LLC, led by Joseph Fichera, Senior Managing Director and Chief Executive Officer, to serve as their advisor and lead expert testifying witness regarding the capital markets and auction rate securities in particular. Saber assisted the investors and their counsel throughout the process including presenting at the final hearing.
While each arbitration or litigation is fact specific, institutional investor claims have often presented arbitrators and judges with complex and confusing issues. Saber Partners with over 28 years experience on point, provides trusted, senior-level, independent analytical services to investors, issuers, broker-dealers, regulators and others. The firm has practical expertise. It also has extensive in-depth experience across a spectrum of financial products, including corporate debt and equity, securitized debt and municipal finance. This includes the auction rate securities market and the rules and regulations governing securities professionals. More information on Saber’s auction rate securities work can be found at www.saberpartners.com/ARS/.
“Litigation is ugly, time consuming and expensive; it should be avoided if at all possible,” said Joseph Fichera. “Unfortunately, with the statute of limitations deadline soon approaching and mixed results with settlements requiring certain broker “best efforts” at liquidity solutions, additional litigation is expected,” he added. “Saber Partners is an expert resource for all parties, investors, broker-dealers and issuers trying to understand the origins of the problem and find solutions.”
Saber Partners, LLC, is a New York-based corporate financial advisory firm. More information is available at www.saberpartners.com.