NEW YORK – An attorney who represents pension funds, unions, individuals and others in class-action securities cases says shareholder lawsuits against investment banks and other failed financial institutions are almost certain to follow the financial meltdown on Wall Street.

Jeffrey Zwerling of Zwerling, Schachter & Zwerling, LLP, in New York says such lawsuits would seek recoveries for smaller investors who are facing millions of dollars in losses based on the financial institutions’ claims that their underlying investments were sound.

“The people who invested in these stocks or mortgage-backed securities weren’t high-stakes gamblers,” Mr. Zwerling says. “They’re like you and me. They invested a dollar and expected to receive a dollar’s worth of value in return.”

“But because the executives at some of these financial institutions, investment banks and mortgage houses were treating their businesses as if they were their own personal casinos, the investors didn’t receive the value they thought they paid for,” he says. “All they received was an illusion.”

Mr. Zwerling represents the lead plaintiff in the securities class-action case involving auction rate securities underwritten or sold by Citigroup (NYSE:C) in auctions it managed. After the market for auction rate securities shut down early this year, investors were left with no access to their money. Since then, New York Attorney General Andrew Cuomo has forced Citigroup and other institutions to make good on the auction rate securities, but still unknown is whether pension funds and the individual workers they represent will receive any money.

In Michigan, Mr. Zwerling represents the Wayne County Employees Association in a class-action securities lawsuit against the MGIC Investment Corporation (NYSE:MTG), a provider of private mortgage insurance. The lawsuit claims MGIC failed to warn investors of large financial losses it was experiencing as a result of the worsening credit crisis and problems in the home mortgage industry.

Zwerling, Schachter & Zwerling, LLP, successfully represents pension funds, unions, individuals and others in legal battles against those accused of corporate malfeasance. The firm handles high-profile and ground breaking class actions involving securities fraud, antitrust violations, and far-reaching consumer fraud.

More information is available at http://www.zsz.com.

For more information or to speak with Jeffrey Zwerling about the financial crisis, please contact Mark Annick at 800-559-4534 (office), 214-213-1754 (mobile) or mark@androvett.com.

Press Contact Information

Zwerling, Schachter & Zwerling, LLP
mark@androvett.com
214-559-4630
2501 Oak Lawn Avenue, Suite 650, Dallas, TX 75219

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