Frontier Communication Bond investors may now be able to recover losses incurred on Frontier Communication bonds through with the help of investor lawyers. Since Frontier Communication Corps. filed for bankruptcy protection, investors have been determined to find a way to recover their losses. FMSBONDS, INC., previously known as First Miami Securities, issued and sold millions Frontier Communication Bonds to investors.
Our firm, Haselkorn & Thibaut, P.A., (InvestmentFraudLawyers.com), houses some of the best bond fraud lawyers that can help you develop a strong position. We specialize in working with investors at the Financial Industry Regulatory Authority (FINRA) and making arbitration claims against entities that suggested these bonds. Talk to one of our lawyers now by calling 1-800-856-3352.
Who is Frontier Communications?
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Frontier Communications previously known as Citizens Utilities Company, and before that, Citizens Communications Company is a telecommunication company that provided both local and long-distance telephone service, digital TV, internet, and tech support services to businesses and residents in 29 states.
However, there were many internal tensions within the company that most investors were unaware of. NASDAQ delisted the company after information emerged that a humongous debt of $17.2 billion severely crippled its performance. Much of this debt was accounted for bad acquisition deals and the decline in telecommunication services. On April 14, 2002, the company filed for Chapter 11 bankruptcy protection as it could not sustain its business. Moreover, only a month before declaring bankruptcy, the company missed bond payments that were due. At the time, Frontiers Communication was under a debt of $8 billion.
Who is FMSBONDS, INC., previously known as First Miami Securities?
FMSBONDS, one of the brokerage firms that sold Frontier Communication Bonds, has faced severe pressure from investors that lost money. It is alleged that stockbrokers may have suggested and sold these bonds to customers without disclosing all the risks associated with the investment. Moreover, it is also suspected that these investments were not in accordance with the goals of investors.
In the financial industry, it is an obligation of broker-dealers to ensure their brokers do not suggest unsuitable investments to potential investors. Additionally, it is also the duty of broker-dealers to provide complete information to all clients and pay heed to their investment goals and risk.
In most cases, losses can easily be avoided if broker-dealers do not suggest risky or ill-suited investments to clients. However, some brokers are only concerned with their commissions and do not truly respect their investment goals.
Investor Fraud Claims Frontier Communications Bonds
The majority of investors in Frontier Communications bonds have been categorized as institutional investors, namely; Franklin Resources, Gold Tree Asset Management, and Elliott Management Group. Nonetheless, ordinary investors such as retirees also held these bonds.
Legal actions can be taken against FMSBonds, and lost investments can be recovered if there is grounds for stockbroker misconduct and negligence. Similarly, failure to provide investors complete information before selling them is also a strong foundation for a claim.
Contact our fraud attorneys today at Haselkorn & Thibaut if you have invested in Frontier Communications. Our skilled and trained staff will help you determine whether you hold the necessary grounds to file a FINRA arbitration claim to recover your investment. The first consultation is always free and carries no obligations.