The Haselkorn & Thibaut, P.A. law firm is a nationwide investment fraud law firm investigating potential sales practice violations by financial advisors who were recommending Frontier Communications Corporation (NASDAQ: FTR) stock and bonds to retail investors. It is believed that, among other firms, FMSBonds (also called First Miami Securities) a Florida-based firm was marketing these securities to retail investor clients.
Frontier Communications Corporation provides communications services to residential and business customers in urban, suburban, and rural communities in the United States. The Company offers a variety of communications solutions services through its fiber-optic and copper networks, including video, high-speed internet, advanced voice, and frontier secure digital protection.
With $11 billion of unsecured bonds, the April 21, 2020 Chapter 11 bankruptcy filing is largely an effort by FTR to try and restructure the debt and provide some financial flexibility for FTR to continue as a going concern. Unfortunately, as is not uncommon just prior to such a bankruptcy filing, Frontier Communications skipped a bond interest payment that was recently due on March 15, 2020.
The outstanding bond issues include:
|Frontier Communications, 8% 1apr2027, USD||1,650 USD||outstanding|
|Frontier Communications, 8.5% 1apr2026, USD||1,600 USD||outstanding|
|Frontier Communications, 8.875% 15sep2020, USD||1,065 USD||outstanding|
|Frontier Communications, 10.5% 15sep2022, USD||2,183 USD||outstanding|
|Frontier Communications, 11% 15sep2025, USD||3,598 USD||outstanding|
|Frontier Communications, 11% 15sep2025, USD||3,600 USD||outstanding|
|Frontier Communications, 10.5% 15sep2022, USD||2,000 USD||outstanding|
|Frontier Communications, 6.875% 15jan2025, USD||750 USD||outstanding|
|Frontier Communications, 6.25% 15sep2021, USD||775 USD||outstanding|
|Frontier Communications, 7.625% 15apr2024, USD||750 USD||outstanding|
FMSBonds Lawsuit and FINRA Arbitration
FMSBonds has had some FINRA arbitration claims alleging sales practice and supervision issues as a result of transactions in Puerto Rico municipal bonds over the last several years. As one example, there was an Award in a FINRA Office of Dispute Resolution arbitration against FMS Bonds for retail bond investors that was sold Puerto Rico municipal bond securities. In FINRA Case No. 15-00304, an investor alleged FMS Bonds had placed “too many eggs in one basket” in recommending Puerto Rico bond investments to a retiree. The over-concentration issue that case resulted in Award in favor of the Claimant for $218,600 resulting from FMS Bonds negligent supervision, breach of fiduciary duty, and breach of contract.
A review of the FINRA Brokercheck report for FMS Bonds, Inc. (First Miami Securities) reflects a total of 13 separate disclosures. Eleven of which are regulatory disclosures and 2 arbitration disclosures.
Frontier Communication stock and bonds were sold by financial advisors in some cases without proper risk disclosures. In cases where these securities were recommended to retirees or similar conservative income-seeking investors there is the potential for sales practice abuse as a result of misrepresentations, and more often as a result of omissions of material fact, or due to a lack of proper supervision.
Stock or Bond Investors Seeking to Recover Frontier Communications Corporation (NASDAQ: FTR)
For some investors, a private FINRA arbitration customer dispute enables them to bring a claim and potentially recoup their investment losses. These customer disputes typically involve only paper discovery and no depositions, and they are generally faster and more efficient compared to traditional court litigation, as they provide a private forum to resolve disputes more quickly and efficiently.
About Haselkorn & Thibaut, P.A.
Haselkorn and Thibaut, P.A. is a nationwide law firm specializing in handling investment fraud and securities arbitration cases. The law firm has offices in Palm Beach, Florida, on Park Avenue in New York, as well as in Phoenix, Arizona, Houston, Texas, and Cary, North Carolina. The two founding partners have nearly 45 years of legal experience.
Haselkorn & Thibaut, P.A. has filed numerous (private arbitration) customer disputes with the Financial Industry Regulatory Association (FINRA) for customers who suffered investment losses relating to issues similar to those matters mentioned above. There are typically no depositions involved, and those cases are typically handled on contingency with no recovery, no fee terms. Experienced attorneys at Haselkorn & Thibaut, P.A. are available for a free consultation as a public service. Call today for more information at 1 888-628-5590 or visit or visit our website and email us from there at www.investmentfraudlawyers.com.
Evidence-based financial writer with 9 years of experience specializing in earnings, economic data coverage, and bond markets. I combine fundamentals, technicals, and macro to identify low-risk, asymmetric opportunities.