Paulino Nunez, a securities lawyer in Miami, Fla., is representing two investors, including an 88-year-old man, against a former Lehman broker who, he says, sold them more than $2.5 million of Lehman notes when the firm knew it was failing.
Nunez also declined to identify the broker, or to comment on specifics. But he said a firm's bankruptcy generally leaves investors few alternatives but to pursue the broker, as long as there's a reasonable basis for recovery, such as breach of fiduciary duty or selling unsuitable investments.
Other lawyers, however, say naming a broker is often fruitless because most don't have professional liability insurance. "Generally, you have an individual that may not be able to answer to a big award," said Jacob Zamansky, a New York-based securities lawyer.
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