Did You Purchase Bank of America Strategic Return Notes at the Recommendations of Your Merrill Lynch Broker?

Soreide Law Group launched an investigation on behalf of clients wishing to file claims against Merrill Lynch, Pierce, Fenner & Smith regarding the sale of the Bank of America Strategic Return Notes.  Dozens of investors have already filed law suits.
The Strategic Return Notes (SRN) are unsecured debt securities.  These securities are linked to the Volatility Index. Bank of America issued the Strategic Return Notes through Merrill Lynch.  In 2010 and 2011 these Strategic Return Notes fell from $10 to just 50 cents causing investors to lose 90% of their investment.  In several instances, investors were not told by their Merrill Lynch brokers the risks involved with these highly volatile, alternative investments that hedge against the market. Merrill Lynch sold $150 million of these notes to over 4,000 clients in 2010 and 2011. These high-risk, complex, and high commissioned investments are suitable only for those investors who not only understand their complexity, but the risks and volatility as well.
Merrill Lynch settled charges from the SEC on June 23, 2016, stating that it misled its clients by failing to adequately disclose a fixed, regularly occurring cost which was included in its proprietary volatility index knows as the “Execution Factor” that added an extra 1.5% charge on the Index each quarter or an extra 6% per year. The SEC charged that Merrill Lynch did not adequately disclose the Execution Factor charges of 1.5% per quarter, 6% per year, which increased the cost, or level, of each unit of forward implied volatility being purchased as part of that day’s rebalancing.  Merrill Lynch agreed to pay a fine of $10 Million to the SEC to settle charges.
If you were a Merrill Lynch client and your broker recommended the purchase of the high-risk and volatile, Bank of America Strategic Return Notes, contact Soreide Law Group and speak to an attorney regarding the possible recovery of your financial losses at:  888-760-6552.
Soreide Law Group represents clients nationwide before FINRA.  We work on a contingency fee at no cost to you unless there is a recovery.