Aidikoff, Uhl & Bakhtiari (www.securitiesarbitration.com) announces the filing of a FINRA arbitration claim against Securities America on behalf of investors in Medical Capital securities.
The law firm has been contacted by investors and is preparing to file additional FINRA arbitration claims against broker dealers for losses incurred based on the recommendation to purchase Medical Capital securities.
The individual brokers and individual advisors who sold Medical Capital are not targets of investor claims.
“Investors should be aware of a pending class action, said attorney David S. Harrison. “The class case may have certain pitfalls that investors should be aware of in selecting an attorney. Most individual investors will fare better by pursuing an individual FINRA arbitration.”
Medical Capital Corporation and Medical Provider Funding Corporation VI raised more than $2.2 billion through the offering of notes in Medical Provider Funding Corp VI and earlier special purpose entity offerings.
On August 3, 2009 the Securities and Exchange Commission (SEC) sought emergency relief. The SEC has alleged that investors were defrauded among other things, by Medical Capital’s misappropriation of approximately $18.5 million of the $76.9 million raised through the sale of MP VI notes to pay administrative fees to MCC.
“Often the most important choice an investor makes following a disaster like Medical Capital is the remedy they will pursue to vindicate their rights,” said attorney Ryan K. Bakhtiari. “Investors should carefully consider their options.”
Important Facts to Consider Prior to Joining a Medical Capital Class Action
— Many investors may have viable claims based on the investments
unsuitability. Because a suitability claim is dependent on an
individual’s circumstances, this claim cannot be prosecuted on a
class wide basis.
— Investors with significant losses are unlikely ever to be made
whole in a class action.
— Class actions sometimes create hurdles to recovery for individual
investors including depositions and motion practice which are
generally not permitted in securities arbitrations decided before
FINRA. The FINRA arbitration process can usually be completed in a
much shorter period of time, often 15 months. Recovery through a
class action may take several years.
Aidikoff, Uhl & Bakhtiari represents retail and institutional investors around the world in securities arbitration and litigation matters.