Did Your Broker Sell You Unregistered Barclays VXX Exchange-Traded Notes? Our Experienced ETN Loss Attorneys Can Help You Explore Your Legal Options
Shepherd Smith Edwards and Kantas ETN Loss Attorneys (investorlawyers.com) is investigating claims of losses involving the sale of $17.7B in unregistered exchange-traded notes (ETNs) that were issued by Barclays. Bank of New York Mellon (BNY Mellon) was the trustee for these Barclays ETNs.
These synthetic debt instruments were connected to futures on the CBOE Volatility Index (VIX). They were meant to offer short-term exposure to equity market volatility and would not have been suitable for retail investors.
Securities that are offered should be registered to ensure there is transparency and compliance so as to protect investors. The Barclays ETN offerings violated securities laws. Once the issue of being unregistered was discovered, Barclays stopped the ETN sales, told regulators, made a rescission offer, and let certain investors sell back the securities involved.
Barclays consented to pay a $200M fine and $161.M in disgorgement and prejudgment interest over the SEC’s claims related to the Barclays VXX ETNs. The value of these unregistered securities dropped, causing investors to sustain substantial losses.
A proposed class action securities lawsuit was filed against Barclays by exchange-traded note investors, accusing it of not tracking securities sales, which led to the sale of these $17.7B in unregistered VXX exchange-traded notes. In March 2025,
a federal judge dismissed the class action case accusing Barclays and its banking unit of federal securities law violations. The judge said the plaintiffs did not succeed in demonstrating that the bank made any actionable misstatements and omissions.
A class action securities lawsuit was also filed against BNY Mellon for its role in the Barclays VXX exchange-traded notes sale. The investor plaintiffs contend that not only did BNY Mellon fail in its role as trustee to properly verify the legitimacy of these ETN offerings, but also, it committed due diligence negligence that enabled the unregistered Barclays exchange-traded notes’ sale.
They argue that this allegedly breached Barclays’ fiduciary duty and it failed to act in investors’ interests while exposing them to serious risks and possible losses.
How Can Our Trusted Barclays ETN Loss Attorneys Help?
Shepherd Smith Edwards and Kantas ETN Loss Attorneys represents clients who have suffered losses because of broker misconduct or negligence. Separate from Barclays’ role as issuer of these unregistered exchange-traded notes, and BNY Mellon’s part as trustee, there are brokerage firms that marketed and sold these unregistered investments to customers.
If you are an investor who purchased a Barclays VXX ETN at the unsuitable recommendation of your financial advisor, you may have grounds for pursuing damages from them and their broker-dealer.
Brokers and their firms are supposed to conduct the necessary due diligence to ensure that an investment is registered and appropriate for each customer given their investing profile and risk tolerance level.
While joining a class action claim might seem like a cost-effective solution, you should know that such litigation doesn’t result in much recovery for the plaintiffs even when there is a win.
Filing your own individual claim, especially when you are represented by knowledgeable securities lawyers, can maximize your chances for a full recovery. Not only that, but you would have your own legal team protecting your legal rights and fighting for you.
Because we work on a contingency basis, if we decide to work together, we only receive payment for our services if we secure a settlement or award for you. The fees come from your recovery and not directly out of your own pocket.
More than 90% of our clients have received full or partial financial recovery through our skilled efforts.
Call our ETN Loss Attorneys at (800) 259-9010 or fill out this contact form.