Investors holding Lehman Brothers-issued principal protected notes will receive an amount equal to six cents on the dollar as per the initial Lehman bankruptcy distribution, US law firm Vernon Healy has been informed by Wilmington Trust, the bankruptcy trustee handling Lehman note distributions.
Lehman note holders "may receive up to 21 cents on the dollar with that amount dribbled out over the next three to five years through the bankruptcy liquidation process," said attorney Christopher Vernon, of Vernon Healy (pictured). "In our ongoing efforts to assist investors, we are aggressively pursuing UBS in arbitrations before the Financial Industry Regulatory Authority (Finra) for fraudulent misrepresentations to investors that their Lehman notes were safe and 100% principal protected."
Vernon believes that the new information from the bankruptcy trustee will "shock those defrauded investors who have not obtained legal counsel yet and have held out hope that the bankruptcy process would provide them with some meaningful recovery."
The second distribution in the Lehman Brothers bankruptcy is set to take place on 30 September 2012 and the third distribution on 30 March 2013. Semi-annual distribution will take place thereafter.
As reported by SRP last year, Vernon Healy previously claimed that the mis-selling processes were part of a push by UBS' financial advisors to sell structured products during the period in which the bank was selling on its own Lehman debt.