January 17, 2011
A retired woman won a six-figure damages award against Smith Barney to compensate her for investment losses caused by the Wall Street firm.
The investor invested her retirement savings with Smith Barney in 2005. In 2007, her broker recommended she buy General Motors (GM) preferred stock. The GM stock represented a significant portion of her total portfolio. The price of the GM stock subsequently plummeted and GM eventually filed for bankruptcy protection. The investor lost 76% of her investment in GM.
On November 18, 2010, a Financial Industry Regulatory Authority (FINRA) arbitration panel ruled in favor of the investor and awarded her $136,000, following a three-day arbitration in Arizona. The FINRA panel determined that her broker’s recommendation to purchase General Motors (GM) stock was not suitable. The arbitration panel also directed Smith Barney (now known as Morgan Stanley Smith Barney) to pay the investor’s attorney’s fees.
CONTACT: David Valicenti - 413-553-0403