Investor Updates 2025

Legion Capital securities were sold through independent broker-dealers and registered investment advisers to retail investors nationwide. These financial professionals are expected to conduct reasonable due diligence and to recommend investments that are in the client’s best interest, taking into account factors such as risk tolerance, income needs, time horizon, and liquidity requirements.

UBS reportedly faces more than $500 million in total exposure to First Brands Group across its asset-management and investment divisions. The scale of the exposure and the resulting investor losses raise serious questions about risk management and concentration oversight within UBS O’Connor.

IHC investors were told they were buying safe, income-producing products that offered fractional ownership in real estate ventures without the burden of property management. Instead, they were exposed to high-risk, illiquid securities. Altamirano PLLC is investigating whether brokerage firms met their obligations under FINRA’s suitability, due diligence, and supervision rules.

On January 28, 2021, Robinhood and several other brokerages abruptly restricted trading in GameStop, AMC, and other heavily shorted stocks, citing clearinghouse deposit requirements and extreme volatility. Retail investors found themselves unable to buy and faced strict position-closing-only (PCO) trading restrictions.

Many brokers touted Easterly ROCMuni for its yield without explaining that the higher income stemmed from speculative holdings and borrowed money. Others failed to mention ongoing 12b-1 fees or distribution charges that eroded returns. Those omissions strike directly at the heart of the Disclosure and Care Obligations under Reg BI.

According to its prospectus, the Easterly ROCMuni High Income Municipal Bond Fund’s primary investment objective was to provide income exempt from federal taxes, and its secondary objective was total return. Investors associate municipal bond funds with safety and stability. The fine print told a different story.

As of October 2025, investors have secured eleven separate FINRA arbitration awards tied to GWG L Bonds. Recoveries range from small individual claims to awards exceeding $1 million.

Even though GWG filed for bankruptcy, given the trustee’s projection that bondholders may recover only 2–3% of principal invested, investors can still pursue claims against the brokerage firms that sold the bonds. Panels have awarded compensatory damages, interest, and costs in multiple cases, underscoring arbitration as a viable path to recovery.

This case shows that even in smaller claims, arbitration panels may hold individual advisors liable for unsuitable GWG sales. It also illustrates that statutory interest can increase an investor’s recovery, even when the principal damages are modest.