Our Structured Product Loss Lawyers Represent Claimants Against Broker-Dealers

Autocallable structured notes are complex, high-risk debt investments that expose retail investors to severe risks—including downside principal loss, issuer default, illiquidity, and capped upsides—despite often being aggressively marketed as safe, high-yield bond alternatives. Consequently, the law firm Shepherd Smith Edwards and Kantas is investigating and representing investors in FINRA arbitration claims against broker-dealers for unsuitable recommendations, misrepresentations, and prioritizing high commission fees over client interests.

Shepherd Smith Edwards and Kantas (investorlawyers.com) is continuing to investigate claims of investors losses involving autocallable structured notes. Even though these high-risk, complex products can be sold to retail investors, they remain unsuitable for many of them and even for certain sophisticated, and accredited investors. This is why it is important that your financial advisor conduct the proper due diligence before marketing and selling autocallable structured notes to you.

What Is an Autocallable Structured Notes and What Are the Risks?

• This is a debt and options investment tied to its underlying assets and their performance.
• With its credit risks and derivative parts, autocallable structured notes are complex products.
• They are callable in that they can be automatically redeemed if those assets trade at an established threshold or higher on a predetermined observation date.
• These structured products tout coupon or interest payments that are higher than the ones offered by regular bonds.
• There is no principal protection. If the underlying assets go down under the contingent barrier upon maturity, an autocallable structured note investor could end up losing part or all of their principal.
• These are unsecured debt obligations from the banks issuing them. If the bank files for bankruptcy or defaults, an autocallable structured note investor could lose their entire investment.
• An issuer can call your note early if the underlying market does well. An autocallable structured note investor could end up having to reinvest their money at times when conditions are less than ideal.
• This is an illiquid investment that cannot be sold or traded on a public stock exchange. Any chance to sell them on a secondary market will likely happen at a significant loss.
• Any upside is capped at a fixed coupon rate.
• Often, pricing is established using an internal valuation model.
• Autocallable structured note investors typically have to pay high upfront commissions and fees.

Retail investors can fail to recognize the complex risks or fees built into autocallable structured notes. It doesn’t help that broker-dealers and banks tend to market these investments as income-producing or yield enhancing options to CDs or traditional bonds.

Why Are Autocallable Structured Note Investors Suing Their Brokers?

Shepherd Smith Edwards and Kantas represents autocallable structured note investors with investment loss recovery claims against their brokers. Unfortunately, there are broker-dealers that will:

• Unsuitably recommend this complex structured product to customers for whom this is a bad investment fit.
• Make misrepresentations and omissions, including downplaying the risks while inflating possible upsides.
• Prioritize the high fees and commissions they can earn over the customer’s best interests.

I’m An Autocallable Structured Note Investor. How Do I File An Investment Loss Recovery Claim Against My Financial Advisor?

You will need to make your claim in FINRA arbitration. You also want to make sure you are represented by seasoned autocallable structured product lawyers who know how to maximize your chances for financial recovery.

Our trusted autocallable structured note law firm has successfully sued large Wall Street firms and broker-dealers on behalf of investors. More than 90% of our clients have won awards or secured settlements through our dedicated efforts.

Talk To Us About Your Autocallable Structured Product Losses

Call our Autocallable Structured Product Lawyers at (800) 259-9010 or contact us online to schedule your free case consultation.