Dozens of settlements and awards on behalf of clients

Cary S. Lapidus has obtained dozens of settlements, awards and judgments on behalf of his clients since leaving the Securities and Exchange Commission, where he worked in the Enforcement and Market Regulation Divisions.

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“Cary Lapidus is probably the most well prepared attorney with whom I have ever dealt. He has excellent judgment and understanding of the law. Most important of all, he is highly ethical and those who deal with him know that his word is his bond.“
Paul Dubow
Opposing Counsel & Mediator in Six Cases

In The News

INVESTORS GET $2.2M IN BIGGEST FUND ARBITRATION AWARD
Kathy Shwiff
Dow Jones Newswires
July 06, 2010

A couple of investors were awarded $2.2 million, which is the largest amount ever in an arbitration case over losses in a leveraged municipal arbitrage bond fund.
Money managers have been using such funds--also known as tender-option-bond programs--as an alternatives form of leverage instead of auction-rate securities, after that market froze in February 2008.
An American Arbitration Association panel in San Francisco ordered First Republic Securities Co. to pay $2.1 million to Elliot and Rhoda Levinthal and their trust to replace their losses from a $3 million investment three years ago in a bond fund that used a leveraged arbitrage strategy, including trades of municipal bonds, short-term notes and interest-rate derivatives. They also were awarded the amount they paid in fees and other costs for the arbitration.
Their lawyer, Cary Lapidus, said the panel found that the brokerage was wrong to recommend the investment given the Levinthals' investment objective and risk tolerance.
The couple had accused First Republic of misrepresenting facts about the fund, failing to conduct due diligence in designing the fund, failing to adequately train and supervise employees in the sale of the fund and recommending an unsuitable investment.
The panel found that the Levinthals' losses were the result of First Republic's misconduct, including professional negligence and breaching its fiduciary duties to its clients.
Attorneys for the brokerage couldn't immediately be reached for comment.

Please contact us for assistance with securities arbitration law, securities litigation, broker misconduct, investment advisor misconduct and investment losses.



	Dozens of settlements and awards on behalf of clients Cary S. Lapidus has obtained dozens of settlements, awards and judgments on behalf of his clients since leaving the Securities and Exchange Commission, where he worked in the Enforcement and Market Regulation Divisions. WCM, LLC v. Cooper ⇒ $1.56 million (plus attorneys fees and expenses) The Law Offices of Cary S. Lapidus obtained an award of $1.56 million on behalf of a registered investment advisory firm and two of its partners who retained Lapidus to recover money allegedly misappropriated by one of their partners. In addition to the $1.56 million monetary award, Lapidus' clients were awarded their attorneys' fees and expenses. The arbitrator also found that the firm's expulsion of the partner was "For Cause". Teller v. Denison ⇒ $1.3 million The Law Offices of Cary S. Lapidus obtained an arbitration award of $1.3 million, including in excess of $349,000 in attorneys' fees and costs on behalf of a client who alleged a breach of contract in connection with the private sale of securities. Breiman v. Round Hill Securities, Inc. et. al. ⇒ $1.44 million The Law Offices of Cary S. Lapidus obtained an arbitration award of $1.44 million on behalf of clients who alleged fraud, breach of fiduciary duty and misrepresentations in connection with their securities portfolio. Smurzynski v. Kensington Wells, Inc., et. al. ⇒ $1.84 million (including $1 million in punitive damages and interest) The Law Offices of Cary S. Lapidus obtained an arbitration award of $1.84 million including $1 million in punitive damages and interest for clients who alleged that the stocks they invested in were manipulated and that material facts were misrepresented to them. Pacific Stock Exchange v. Cox Securities, et. al. ⇒ $1.54 million The Law Offices of Cary S. Lapidus obtained an award of $1.54 million on behalf of the Pacific Stock Exchange who retained Lapidus as special counsel to prosecute the case. In addition to the monetary award, Lapidus obtained a Decision ordered the permanent bar of the Pacific Exchange member from membership with the Pacific Stock Exchange. Levinthal v. First Republic Securities Company, LLC ⇒ $2.17 million The Law Offices of Cary S. Lapidus recovered $2.17 million for clients who sustained losses in a complex municipal arbitrage bond fund. The clients alleged that the fund was unsuitable for them and that the firm that recommended and sold the investment had failed to perform proper due diligence. The award is notable for awarding the full amount of the clients' damages, including out-of-pocket losses and arbitration expenses. Coutant v. Morgan Stanley Dean Witter, et. al. ⇒ $1.01 million The Law Offices of Cary S. Lapidus obtained an arbitration award of $1.01 million on behalf of clients who alleged that their securities brokerage firm failed to diversity their account, placed them in unsuitable investments and misrepresented the risks of options trading. Bourdev v. JPMorgan Chase ⇒ $350,000 + revision of Form U-5 language $350,000 on behalf of a registered representative/banker who was terminated from JPMorgan Chase. After a full evidentiary hearing, a FINRA arbitration panel awarded $350,000 in compensatory damages for defamation and/or wrongful termination and ordered that the language on her Form U-5 be changed to reflect that she did not engage in any wrongdoing and that the company conducted a deficient investigation. Hall v. Morgan Stanley Dean Witter, et. al. ⇒ $1.76 million The Law Offices of Cary S. Lapidus obtained an arbitration award of $1.76 million for clients who sustained losses in a complex investment known as a Prepaid Variable Forward Contract. The clients also alleged the recommendation of unsuitable investments in their stock portfolio.
site navigation Profile Services Case Results Reviews In The News Contact Info Home Page “Cary Lapidus is probably the most well prepared attorney with whom I have ever dealt. He has excellent judgment and understanding of the law. Most important of all, he is highly ethical and those who deal with him know that his word is his bond.“ Paul Dubow Opposing Counsel & Mediator in Six Cases		In The News INVESTORS GET $2.2M IN BIGGEST FUND ARBITRATION AWARD Kathy Shwiff Dow Jones Newswires July 06, 2010 A couple of investors were awarded $2.2 million, which is the largest amount ever in an arbitration case over losses in a leveraged municipal arbitrage bond fund. Money managers have been using such funds--also known as tender-option-bond programs--as an alternatives form of leverage instead of auction-rate securities, after that market froze in February 2008. An American Arbitration Association panel in San Francisco ordered First Republic Securities Co. to pay $2.1 million to Elliot and Rhoda Levinthal and their trust to replace their losses from a $3 million investment three years ago in a bond fund that used a leveraged arbitrage strategy, including trades of municipal bonds, short-term notes and interest-rate derivatives. They also were awarded the amount they paid in fees and other costs for the arbitration. Their lawyer, Cary Lapidus, said the panel found that the brokerage was wrong to recommend the investment given the Levinthals' investment objective and risk tolerance. The couple had accused First Republic of misrepresenting facts about the fund, failing to conduct due diligence in designing the fund, failing to adequately train and supervise employees in the sale of the fund and recommending an unsuitable investment. The panel found that the Levinthals' losses were the result of First Republic's misconduct, including professional negligence and breaching its fiduciary duties to its clients. Attorneys for the brokerage couldn't immediately be reached for comment. Please contact us for assistance with securities arbitration law, securities litigation, broker misconduct, investment advisor misconduct and investment losses.
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