Lowey Dannenberg Prosecuting Auction Rate Securities Claims

Lowey Dannenberg Cohen & Hart, P.C. is part of a nationally coordinated team of attorneys prosecuting the high profile claims on behalf of investors arising out of investments in Auction Rate Securities and the auction market in which these securities were traded. The issuers of Auction Rate Securities materially misrepresented the liquidity and risk of the Auction Rate Securities to investors by labeling these securities as "cash equivalents" but the liquidity of Auction Rate Securities was created artificially when through a managed bidding process the issuers purchased auctions rate securities themselves in order to keep the auctions from failing.  In February, 2008, the market for Auction Rate Securities collapsed. As a result, auctions run by the broker-dealers have failed rendering more than $300 billion in Auction Rate Securities illiquid.