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Investors in "cash equivalent" securities learn their funds can't been withdrawn because their investments are illiquid.
Both individual and corporate investors have lost access to their capital by the auction failures of Auction Rate Securities.
If you and invested in Auction Rate Securities and your funds are frozen, you have legal rights. Get a free legal consultation.
While most of the press attention aboutauction failures for Auction Rate Securities has been focused on individual investors, the crisis has also been a huge problem for companies of all sizes. In fact, many public companies have had their earnings suffer because they've had to write off the value of their holdings in these securities. According to the Wall Street Journal several prominent technology companies have significant holdings of Auction Rate Securities, including: Monster Worldwide, Inc., Intuit, Inc., Palm, Inc, Earthlink Inc, and MetroPCS Communications.
Companies purchased these securities for the same reasons that individuals did, they believed they wre cash equivaents which they could sell at any time. Because the securities are now illiquid, these companies will have to classify these holdings as long term debt, which can not be accessed, on their balance sheets While these investments will still earn interest, their lack of liquidity will be of concern to the companies and their investors.
Investment banks and brokerage houses misled investors about the safety of Auction Rate Securities. If you or your company invested money in these securities and you are unable to sell them, you may have valuable legal rights. Mark & Associates, P.C. and Levin Papantonio Thomas Mitchell Echsner Proctor, PA have joined forces to aggressively represent investors who have lost access to their funds. To request a free legal consultation please complete the inquiry form on this page or call 1-866-50-RIGHTS (1-866-507-4448).
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