When Wall Street invents a complex financial product, retail investors are often the ones left holding the bag. One of the most problematic of these products in recent years has been auto-callable structured notes—a type of investment that brokers aggressively pushed onto their clients, often without fully explaining the risks. The attorneys at ChapmanAlbin are helping investors recover losses through FINRA arbitration and other legal avenues.
Auto-callable notes are exotic investments linked to the performance of an underlying asset, such as a stock index or individual equity. These notes promise enhanced yield, but with a catch: if the underlying asset performs too well—or too poorly—the note may be automatically “called” before maturity or cause significant principal losses.
Brokers often marketed these products as safe, income-generating alternatives to traditional bonds or CDs. In reality, they carried substantial market risk, issuer credit risk, and most dangerously, complex call features that could leave investors with far less than they originally invested.
These structured notes are often inappropriate for conservative or moderate investors, particularly retirees seeking preservation of capital. Unfortunately, many brokers failed to conduct reasonable due diligence or misrepresented the risks. Many collected high commissions for selling these opaque products.
Investors have lost significant amounts of money when these notes were automatically called at the wrong time, or when the market dipped below trigger levels, leading to steep losses. In many cases, the losses were avoidable had the broker acted in the client’s best interests.
If you or someone you know lost money on an auto-callable structured note—especially if the investment was recommended by a broker—you may have a case. Time is limited to bring a claim, so it’s important to consult with an experienced investment fraud attorney right away.
At ChapmanAlbin, we offer free consultations and work on a contingency basis—meaning we don’t get paid unless you recover money. Contact us today to discuss your case confidentially.
Step 1.
Talk to an Experienced Attorney Today
Call and speak to one of our attorneys* for a no-cost consultation to discuss your situation, answer your questions, and help you determine the next steps. This call usually takes about 15 minutes, but we are happy to talk to you as long as you would like!
Step 2.
Quick Review of Your Paperwork
If we think you might have a case, we will need to review a few basic documents. If we determine you have a case, then you will have the option to hire us as your attorneys to pursue it.
Step 3.
Signed Attorney/Client Agreement
If you decide to hire us to pursue your case, we will have you sign an attorney-client agreement so we can begin the process of trying to recover your losses.*
*In the vast majority of cases, our agreement is contingent – meaning you won’t owe us any money unless we recover money for you.
