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Securities America Arbitrations/Class Action Finalized

By SHUSTAK REYNOLDS & PARTNERS of Shustak Reynolds & Partners, P.C. posted on Wednesday, September 7, 2011.

The Billitteri v. Securities America class action has been finalized. That class action resolved claims of thousands of Securities America customers who purchased private placements in Provident Royalty and Med Cap holdings. In addition to the class action litigants, approximately 650 arbitrations were filed against Securities America and its parent holding company, Ameriprise. The class action litigants unsuccessfully tried to obtain from the district court an order barring the individual arbitrations from proceeding, arguing the “limited fund” theory.

That argument ultimately was rejected, and the proposed class action settlement not approved. Our firm represents two wealthy investors who had invested $4 million in both Provident and Med Cap investments, all of which were worthless and part of an ongoing Ponzi scheme perpetuated by Provident and Med Cap.

The Settlement has now been approved. The class action litigants will share in an $80 million settlement and the arbitration claimants, of which our firm’s clients are a part, will receive 48 cents on the dollar for their worthless and fraudulent Provident and Med Cap investments.

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