Investigation and pending class action against SunTrust Bank and its wholly owned broker subsidiary SunTrust Robinson Humphrey (SunTrust Bank and its wholly owned broker subsidiary SunTrust Robinson Humphrey )
Investigation and pending class action against SunTrust Bank and its wholly owned broker subsidiary SunTrust Robinson Humphrey (SunTrust Bank) on behalf of investors who purchased auction rate securities from SunTrust Bank.
Auction rate securities are also known as auction rate preferred stock; auction market preferred stock; variable rate preferred securities; money market preferred securities; auction rate bonds.
SunTrust Bank represented to investors that auction rate securities were equivalent to cash or money market funds, were highly liquid and safe investments for short term investments. SunTrust Bank and its wholly owned broker subsidiary SunTrust Robinson Humphrey knew but failed to disclose material facts about auction rate securities including the fact that auction rate securities were in fact long-term financial instruments that were artificially supported and manipulated by broker-dealers thereby creating the appearance of liquidity and stability.
On February 13, 2008, 87% of all auction for auction rate securities failed. This collapse left investors holding 300 billion in auction rate securities with no means of liquidating the investments.
Name (Stock Symbol)
SunTrust Banks, Inc. (STI)
SunTrust Banks, Inc. operates as the holding company for SunTrust Bank, which provides various financial services to consumer and corporate customers in the United States.
The information provided on ClassAdvocate.com is general in nature,
does not apply to any particular factual situation, and is not and
should not be taken as legal or other professional advice. We make no
commitment or warranty that the factual, legal or any other information
on ClassAdvocate.com, or on any linked website, is accurate, complete,
error-free, or current. As such, you should not rely on such information,
and should seek professional advice if and as you determine appropriate.
ClassAdvocate.com is not a lawyer referral service, and no attorney-client
or confidential relationship is or should be formed by use of the site.
The investigations listed on ClassAdvocate.com are attorney advertisements
and do not in any way constitute a referral or endorsement by ClassAdvocate.com
or any approved or authorized lawyer referral service.