Did you lose money investing in VelocityShares 3x Long Crude Oil ETNs linked to the S&P GSCI Crude Oil Index ER New (UWT)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who suffered losses investing in VelocityShares 3x Long Crude Oil ETNs linked to the S&P GSCI Crude Oil Index ER New (UWT) at the recommendation of their financial advisor. If you suffered losses investing in the investment, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim against the brokerage firm that recommended the investment.
As energy prices have declined so has the value of energy investments. Many investors have suffered significant losses in energy investments that were recommended to them by the financial advisor. Many of these investments were high risk and were unsuitable for their portfolios.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
UPDATE 5/16/2020: On March 19, 2020, Citigroup Global Markets Holdings Inc. announced that it intends to exercise its right to accelerate at its option the two series of exchange traded notes: VelocityShares 3x Long Crude Oil ETNs linked to the S&P GSCI Crude Oil Index ER New (UWT) and VelocityShares 3x Inverse Crude Oil ETNs linked to the S&P GSCI Crude Oil Index ER New (DWT). The ETNs are expected to be redeemed on April 3, 2020. The amount payable to holders of the ETNs upon redemption is expected to be equal to the closing indicative value of the respective series of ETNs on the final valuation date of the Optional Acceleration Valuation Period. The Optional Acceleration Valuation Period will be the period of five consecutive index business days beginning on March 25, 2020 and expected to end on March 31, 2020. The ETNs are expected to continue to trade until April 2, 2020. As described in more detail in the pricing supplement for the ETNs, if a trigger event occurs before the end of the Optional Acceleration Period, holders of the ETNs will not receive the amount described above, but rather an amount determined as set forth in the pricing supplement for the ETNs.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
About the Investment: VelocityShares 3x Long Crude Oil ETNs linked to the S&P GSCI Crude Oil Index ER New (UWT)
According to the pricing supplement dated October 14, 2016 (the “Pricing Supplement”), VelocityShares 3x Long Crude Oil ETNs linked to the S&P GSCI Crude Oil Index ER New (UWT) is a Leveraged Long Exchanged Traded Note (“ETN”) that is issued by Citigroup Global Markets Holdings Inc. Citigroup Global Markets Holdings Inc. also issued a Leveraged Inverse ETN, VelocityShares 3x Inverse Crude Oil ETNs linked to the S&P GSCI Crude Oil Index ER New (DWT). The ETNs are designed for investors who seek leveraged long or leveraged inverse exposure, as applicable, to the daily performance of the Index. The ETNs do not guarantee any return of principal and do not pay any interest during their term.
The Pricing Supplement further warns that the ETNs are not intended to be “buy and hold” investments. The ETNs are intended to be daily trading tools for sophisticated investors to manage daily trading risks. They are designed to achieve their stated investment objectives on a daily basis, but their performance over different periods of time can differ significantly from their stated daily objectives. The ETNs are riskier than securities that have intermediate- or long-term investment objectives, and may not be suitable for investors who plan to hold them for a period other than one day. Any decision to hold the ETNs for more than one day should be made with great care and only as the result of a series of daily (or more frequent) investment decisions to remain invested in the ETNs for the next one-day period. Accordingly, the ETNs should be purchased only by knowledgeable investors who understand the potential consequences of an investment linked to the Index and of seeking daily compounding leveraged long or leveraged inverse investment results, as applicable. Investors should actively and frequently monitor their investments in the ETNs, even intra-day. If you hold the ETNs for more than one day, it is possible that you will suffer significant losses in the ETNs even if the performance of the Index over the time you hold the ETNs is positive, in the case of the Leveraged Long ETNs, or negative, in the case of the Leveraged Inverse ETNs.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Due Diligence Requirement
FINRA requires brokerage firms to conduct due diligence on investments, such as VelocityShares 3x Long Crude Oil ETNs linked to the S&P GSCI Crude Oil Index ER New (UWT), and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokerage firms that fail to conduct adequate due diligence on investments they recommend, such as VelocityShares 3x Long Crude Oil ETNs linked to the S&P GSCI Crude Oil Index ER New (UWT), or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing in VelocityShares 3x Long Crude Oil ETNs linked to the S&P GSCI Crude Oil Index ER New (UWT) and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.
