{"id":732,"date":"2010-08-10T03:31:50","date_gmt":"2010-08-10T03:31:50","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2010\/08\/ubs_ordered_to_pay_auctionrate"},"modified":"2022-03-09T16:00:52","modified_gmt":"2022-03-09T22:00:52","slug":"ubs-ordered-to-pay-auctionrate","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/ubs-ordered-to-pay-auctionrate\/","title":{"rendered":"UBS Ordered to Pay Auction-Rate Securities Investor Kajeet Inc. $81 Million"},"content":{"rendered":"

\t\t\t\tA Financial Industry Regulatory Authority arbitration panel has ordered UBS Financial Services Inc.<\/a> to pay investor Kajeet Inc. $80.8 million for failed auction-rate securities. The brokerage firm disagrees with the decision and intends to file a motion to have the claim vacated.<\/p>\n

Although Kajeet had only invested $8 million in ARS through UBS, the company, which markets cell phones for kids, contends that because its securities were frozen, a “domino effect” resulted and it ultimately lost $110 million. Also, Kajeet was forced to significantly cut its 60-person work team and it lost a key distribution deal with a national retail chain. <\/p>\n

UBS had previously resolved ARS-related charges with an agreement that it would pay a $150 million fine and buy back $18.6 billion of the securities. The brokerage firm was one of a number of broker-dealers that agreed to repurchase over $60 billion in ARS from investors because they had allegedly misrepresented the securities as safe investments. When the $330 million ARS market froze in February 2008, UBS had over $35 billion in ARS that were held by some 40,000 customers.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

A Financial Industry Regulatory Authority arbitration panel has ordered UBS Financial Services Inc. to pay investor Kajeet Inc. $80.8 million for failed auction-rate securities. The brokerage firm disagrees with the decision and intends to file a motion to have the claim vacated. Although Kajeet had only invested $8 million in ARS through UBS, the company, […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3798,3865,3752,3739,3741,3755],"tags":[],"class_list":["post-732","post","type-post","status-publish","format-standard","hentry","category-arbitration","category-auction-rate-securities","category-financial-firms","category-finra","category-securities-fraud","category-ubs"],"yoast_head":"\nUBS Ordered to Pay Auction-Rate Securities Investor Kajeet Inc. $81 Million — Investor Lawyers Blog — August 10, 2010<\/title>\n<meta name=\"description\" content=\"A Financial Industry Regulatory Authority arbitration panel has ordered UBS Financial Services Inc. to pay investor Kajeet Inc. $80.8 million for failed — August 10, 2010\" \/>\n<meta name=\"robots\" content=\"index, follow, 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