By CB Online Staff, Caribbean Business
Law firms are handling an increasing number of arbitration claims by investors in Puerto Rico Electric Power Authority bonds as island government officials signal that they should be prepared to expect repayment delays or reductions as part of the public utility’s restructuring.
Among the firms involved are Klayman & Toskes together with the Carlo Law Offices in Puerto Rico.
“Our clients were sold Prepa bonds by brokerage firms in Puerto Rico, and were misled to believe that the bonds were low risk and backed by the government,” said Steven D. Toskes of Klayman & Toskes.
“Investors were sold Prepa bonds which carried an extremely long duration to the year 2040, which exposed them to interest rate risk and risk of a default. Our clients were misledand this is not what they bargained for,” he said. “Our firm plans on aggressively prosecuting these claims on behalf of investors in order to hold brokerage firms accountable.”