Overview
On February 17, 2026, a public FINRA Arbitration Panel awarded two separate parties invested through family trusts a combined $1.28 million in compensatory damages. According to the filings, the family trusts sued Fidelity over investments in structured notes. The family trusts asserted causes of action for negligence, failure to supervise, and breach of fiduciary duty, to name a few.
Structured Notes
A structured note is a hybrid debt instruments that combines traditional bonds and derivatives. Structured notes may become risky due to credit risks and liquidity. Structured note cases are expanding because of the inherent credit and liquidity risks in the financial product. At the time of recommendation, often following the COVID-19 Pandemic, investors purchased structured notes when interest rates were low. But the market has shifted since, causing investors substantial investment losses. Not only did financial advisors fail to fully explain the risks of these investments to investors, but also they failed to consider whether the investments in structured notes were suitable for the investors.
Impacted Investors
If you have lost money investing in structured notes, do not hesitate to contact our office at 800-556-3526 or complete our contact form for a free consultation. We work on a contingency fee basis to try to recover losses. In other words, if we do not obtain a recovery, you do not owe us any legal fees. Act before time runs out on your claim.