AllianceBernstein and Sanford Bernstein “Option Advantage” Strategy Investigation | Goodman & Nekvasil, P.A.
Goodman & Nekvasil, P.A. is investigating the sales practices of brokerage firms who recommended Sanford Bernstein “Option Advantage” Strategy.
AllianceBernstein and Sanford Bernstein “Option Advantage” Strategy Investigation
The Option Advantage strategy was allegedly promoted as a low-risk investment for clients. The use of margin was allegedly introduced to unsophisticated clients. Clients were allegedly told they would not have to invest additional funds by agreeing to sign up for a margin account.
The use of a margin account carries uncertain, high-risks
If your equity falls below the minimum margin amount you will receive a margin call. You will then be required to liquidate part of your deposits or securities in the margin account. When you fail to maintain your equity above the minimum margin requirement you will receive a margin call.
You can lose more funds than you deposit in the margin account.
A decline in the value of securities that are purchased on margin may require you to deposit additional funds to avoid the forced sale of those securities.
If additional funds are not deposited the firm can take necessary steps to raise the minimum margin equity amount. The managing broker dealer can liquidate securities without notice to the customer if assets are not added to reach the minimum margin amount.
You may not be entitled to choose which securities or other assets in your account are sold to meet a margin call.
AllianceBernstein allegedly promoted the the Option Advantage strategy to engage in speculative buying and selling call and put options on the S&P 500. This high-risk strategy placed bets on the direction of market indexes. Investors may be facing serious losses as a result of their purchase of the Option Advantage Strategy.
If you believe that your investments in AllianceBernstein and Sanford Bernstein “Option Advantage” Strategy may have been unsuitable or otherwise improper for you, we would like to discuss the possibility of your retaining our firm to represent you in an arbitration action.
Call 800-500-4442 if you think that you have received unsuitable investment recommendations from your adviser.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so may be held responsible for any losses in a FINRA arbitration claim.
There is no charge for an evaluation of your case. We handle our cases on a contingency fee basis. If we don’t recover money for you, we charge no attorney’s fee.
Goodman & Nekvasil, P.A. has recovered more than $400 million on behalf of victimized investors. If you lost money on investments in unsuitable investments and would like your case evaluated by a securities attorney, please contact us.
Some of the information in this blog post was obtained from the SEC and FINRA on 7/20/24. If you believe this information was reported incorrectly, please contact our firm: 1-800-500-4442.