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Structured product & note claims

Structured notes and market-linked products that didn't do what you were told.

Structured products are marketed on their upside — principal protection, enhanced yield, defined outcomes — and sold on complexity most investors were never in a position to evaluate. When the risk was misrepresented, the product was unsuitable, or the downside was never disclosed, the loss can be the basis of a claim against the firm that sold it.

What Goes Wrong

Where structured-product claims come from.

A structured note is a debt instrument whose return is tied to the performance of an underlying asset, subject to a payoff formula set by the issuer. The features that make them profitable to sell are the features that produce claims.

i.

Misrepresented risk & 'protection'

'Principal-protected' and 'buffered' notes sold as safe when they exposed the investor to issuer default, market declines beyond the buffer, or loss of principal entirely — a misrepresentation or omission of material fact.

ii.

Unsuitability & complexity

Complex payoff structures, caps, knock-in barriers, and autocall features sold to investors who could not evaluate them and for whom the product never fit under the suitability and best-interest standards.

iii.

Concentration in notes

Portfolios loaded with structured notes from a single issuer or a single strategy, compounding issuer credit risk and illiquidity in accounts that needed neither.

iv.

Undisclosed costs & illiquidity

Embedded fees, issuer estimated value well below the price paid, and the absence of a real secondary market — costs and constraints the customer was never clearly told about.

Building the Claim

From the term sheet to the record.

Structured-product claims are documented from the offering materials and the firm's own sales and marketing record, measured against what the investor was told and what the investor needed.

i.

The offering documents

The pricing supplement and term sheet define the payoff, the caps, the barriers, the issuer estimated value, and the credit risk — often disclosing risks the sales conversation glossed over.

ii.

The sales & marketing record

Firm-approved marketing, illustrations, and communications that framed the product as safer or simpler than its own documents show it to be.

iii.

The customer profile

The objectives, liquidity needs, and risk tolerance that make a complex, illiquid, issuer-dependent note unsuitable for this investor.

iv.

Concentration & supervision

The share of the portfolio in structured products and the firm's supervision of a complex-product program that its own procedures were required to control.

Frequently Asked

Common questions about this claim.

Can I recover losses on a structured note?
Potentially, where the product was misrepresented, was unsuitable for you, or carried risks and costs that were not disclosed. A structured note that lost money purely because the market moved may not support a claim; one that was sold as 'protected' or 'safe' when it was neither often does.
What is a 'principal-protected' note and why do they generate claims?
A principal-protected note is marketed as returning your principal at maturity, but that protection typically depends on the issuer's creditworthiness and on specific conditions being met. When the issuer's credit deteriorates, or the protection was subject to undisclosed limits, investors who were told the product was safe can be harmed.
Are market-linked CDs and autocallable notes covered?
Yes. Market-linked CDs, autocallable notes, buffered and leveraged notes, and similar structured products all raise the same core issues — complexity, caps, barriers, illiquidity, and issuer risk — and are frequently at the center of investor claims.
How are structured-product claims resolved?
Through court or AAA/JAMS arbitration against investment advisers and banks, or through FINRA arbitration where the seller is a broker-dealer, depending on the firm and the agreement you signed.
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Initial inquiries are reviewed personally and treated as confidential whether or not we ultimately work together. We respond to substantive case inquiries within one business day. There is no cost or obligation associated with the initial review.

Florida-based, available nationally for court, AAA, and FINRA matters across the United States.

Useful information for first contact
  • The advisory firm, private bank, or broker-dealer involved
  • The approximate time period of the conduct
  • The nature of the relationship (advisory, trust, brokerage, hybrid)
  • The investments at issue and approximate loss
  • Whether any complaint, claim, or regulatory inquiry has already been filed

Or reach us directly at rafael@recaldelaw.com · (305) 792-9100