NOTICE TO VELOCITYSHARES INVESTORS IN THE DAILY INVERSE VIX SHORT-TERM EXCHANGE TRADED NOTES- The Securities Arbitration Law ...
February 07 2018 - 10:56AM
Business Wire
The Securities Arbitration Law Firm of Klayman & Toskes,
P.A. (“K&T”), www.nasd-law.com, announces an investigation into
Credit Suisse Group AG’s VelocityShares Daily Inverse VIX
Short-Term Exchange Traded Notes (NASDAQ:XIV) (“XIV”) recommended
by full-service brokerage firms and investment advisors. While
major stock indexes fell nearly 10%, the XIV dropped over 90%.
Investors may seek damages for violations of sales practice rules
and regulations, as set forth by the Financial Industry Regulatory
Authority (FINRA). According to Lawrence L. Klayman, Esq.,
“Recommended investments in these securities were unsuitable for
many investors who did not understand the risks associated with the
investment strategy which were not adequately disclosed.”
Financial Engineering Gone Awry
The XIV is an exchange traded note, which was designed to mimic
the inverse performance of the CBOE volatility index, known as the
“VIX”. According to market pundits, the VIX is a measure which
reflects traders’ expectations for volatility in the stock market.
Last week, the risks of the highly complex strategy unraveled
leaving unsophisticated investors with a nearly complete loss. The
value of XIV dropped precipitously this past Friday and has
continued its decline. The value continued to drop throughout the
trading day on Tuesday, February 6, 2018. The overall drop saw the
close at $7.35 or the equivalent of a 92.58% loss.
Credit Suisse Announces End to XIV
Credit Suisse Group AG said it will end trading in a security
that some investors believed exposed retail investors to an undue
amount of risk that was not fully understood by investors and the
financial advisors who made unsuitable recommendations.
The sole purpose of this release is to investigate whether
strategies deployed by full service investment firms were suitable
for investors with concentrated positions in XIV, margin loans
collateralized by XIV, and/or any other negligent or unsuitable
recommendations related to the XIV. Investors who hold accounts at
full-service brokerage firms, and have information relating to the
manner in with the firm handled their portfolios, are encouraged to
contact the attorneys of Klayman & Toskes, P.A., at (888)
997-9956, or visit our firm’s website at www.nasd-law.com.
About Klayman & Toskes, P.A.
K&T is a leading national securities law firm which
practices exclusively in the field of securities arbitration and
litigation, on behalf of retail and institutional investors
throughout the world in large and complex securities matters. The
firm represents high net-worth, ultra-high-net-worth, and
institutional investors, such as non-profit organizations, unions,
public and multi-employer pension funds. K&T has office
locations in California, Florida, New York and Puerto Rico.
Destination:
http://nasd-law.com/notice-to-velocityshares-investors-in-the-daily-inverse-vix-short-term-exchange-traded-notes-the-securities-arbitration-law-firm-of-klayman-toskes-p-a-announces-investigation-on-behalf-of-invest/
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180207005832/en/
Klayman & Toskes, PALawrence L. Klayman, Esq.,
888-997-9956lklayman@nasd-law.comwww.nasd-law.com
VelocityShares Daily Inverse VIX (NASDAQ:XIV)
Historical Stock Chart
From May 2024 to Jun 2024
VelocityShares Daily Inverse VIX (NASDAQ:XIV)
Historical Stock Chart
From Jun 2023 to Jun 2024