HOUSTON, Oct. 13, 2009 (GLOBE NEWSWIRE) -- The Securities Law Firm of Shepherd Smith Edwards & Kantas LLP, www.sseklaw.com, is currently investigating claims on behalf of Clients of Stifel, Nicolaus & Co. in light of the State of Colorado's Securities Division's regulatory suit against them for securities fraud. State regulators are accusing the broker-dealer of making false assurances to investors about auction-rate securities.
In its suit, the securities division accused Stifel Nifel, Nicolaus of violating the Colorado Securities Act by allowing investors to think that their ARS-investments would always be liquid, failing to properly supervise sales team members, and making unsuitable investment recommendations to clients.
The ARS lawsuit against Stifel, Nicolaus seeks to have the broker-dealer suspended in Colorado. The complaint comes on the same day that the Indiana Securities Division filed its securities fraud lawsuit against Stifel, Nicolaus & Co.
ARS are long-term bonds. They are dependent on the success of a periodic auction for short-term liquidity. The fallout continues from the ARS market collapse and state securities regulators continue to take action against broker-dealers. Our securities fraud law firm has remained diligent in our efforts to help ARS investors whose funds were frozen. Broker-dealers and their employees must be held accountable for securities fraud. Our investment fraud lawyers are committed to helping our clients recover their financial losses.
Shepherd Smith Edwards & Kantas LLP has a team of attorneys, consultants and staff with more than 100 years of combined experience in the securities industry and in securities law.