oreide Law Group (888-760-6552) is representing clients against broker/dealers or financial advisors who sold their clients:
PREFERREDPLUS Trust Series CZN-1
On April 29, 2020, Moody’s Investors Service downgraded the rating of certificates issued by PREFERREDPLUS Trust Series CZN-1 as follows:
U.S. $34,500,000 PREFERREDPLUS Trust Series CZN-1 Certificates, Downgraded to Ca; previously on August 15, 2019 Downgraded to Caa3.
According to Moody’s, the downgrade to Ca reflects the fact that the rating of the underlying securities, the 7.05% Debentures due October 01, 2046 issued by Frontier Communications Corporation, was downgraded to Ca on April 16, 2020, and then withdrawn following Frontier’s announcement that the company filed a petition for relief under Chapter 11 of the US Bankruptcy Code.
Moody’s will withdraw the rating of the PREFERREDPLUS Trust Series CZN-1 certificates because it believes it has insufficient or otherwise inadequate information to support the maintenance of the rating.
According to Barron’s the 52-week range is: $5.73 – $14.00. Today it was trading at approximately $6.30. The YTD net change is -38.1% and the 1 year net change is -50.1%.
Brokers/dealers have an obligation to make their clients aware of the possible risks of the investments they are purchasing. Brokers may push investors into expensive or mediocre products due to commissions or incentives from the firms. If the client has a conservative portfolio, particularly with retirement in mind, the broker has a duty to the client to make sure the client knows the risks of the product they are purchasing. Also, the firm the broker is registered with has the obligation to supervise all brokers.
If you’ve suffered losses in PREFERREDPLUS Trust Series CZN-1, due to the recommendation of your broker/dealer or financial advisor, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group works on a contingency fee basis and represents our clients nationwide before FINRA.