Investigation and pending class action against H&R Blocks on behalf of investors who purchased auction rate securities from H&R Block.
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.
H&R Block 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. H&R Block 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)
H&R Block, Inc. (HRB)
H&R Block, Inc. primarily is a tax preparation company, but also offers investment products and services.
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