Reverse Convertible

Investor Claims Is What We Do - All Day, Every Day

Since 1999 our law firm has recovered more than $350,000,000 for victims of investment fraud and misconduct.
  • Jury Verdict Won Against Prudential Securities $262 Million
  • Recovered for 100-Year Old Widow $30 Million
  • Recovered in Retirement Losses $10 Million
  • Recovered for a Large Group of Individual Investors $6.5 Million
  • Recovered for Elderly Victim in Ponzi Scheme Case $3.8 Million
  • Recovered for Elderly Ponzi Scheme Victim $3.2 Million
  • Recovered for More Than 50 Families of Ponzi Scheme in California $3.2 Million
  • Recovered for 35 Families in Northeast Ohio $3.1 Million
  • Losses Recovered for 20 Retirees $3 Million
  • Recovered for Retired Physician Against Major Wall Street Firm Prior to Filing FINRA Arbitration $2.5 Million
/
  • Super Lawyers
  • Million Dollar Advocates Forum
  • AV Preeminent
  • AVVO 10.0
  • Lawyer of the Year
  • Best Law Firms
  • Best Lawyers

I’m Considering Investing in Reverse Convertibles. What Should I Know?

Reverse convertibles are considered high-risk investments. Per the Financial Industry Regulatory Authority (FINRA), a reverse convertible operates like a package of financial instruments that usually has two components—a debt instrument and a derivative. You need to understand the risks associated with reverse convertibles. For example, you face the risk of the stock or asset dropping in value and the possibility that the issuer will not be able to repay its debt obligation.

The Major Risks of Reverse Convertibles Include:

Although putting money into reverse convertibles may make sense for some experienced investors, the average investor should be aware that these complex investment instruments are not always what they appear to be—and they don’t always work the way they’re described.

In fact, some structured products are so complex that the financial advisors and brokers selling them might not even fully understand how they work. Although reverse convertibles can be very high-risk investments, these products are so complex, so poorly understood, and so often touted as “safe investments” that investors are often not aware of the many risks, which include:

  • They are often hard to sell on the secondary market.
  • You may be paying high embedded fees up front.
  • You may be exposed to additional risks from the underlying asset.
  • You may be exposed to the risks associated with selling out options.

Your financial advisor or broker has a professional duty to make sure that a recommended reverse convertible is suitable for your financial goals and that you fully understand the risks.

If you were sold an unsuitable reverse convertible that resulted in losses, or if the promoter assured you that the reverse convertible was “completely safe” or “risk-free,” you may be able to recover your investment losses through FINRA arbitration. FINRA also suggests that you can protect yourself by being “wary of any advertisements or sales literature suggesting that reverse convertibles are safe and suitable for investors seeking high yields.” These ads tend to downplay the risks of these investments. For a free case evaluation, contact our office.

The Meyer Wilson Way

Results-Focused Representation
  • More than $350,000,000 Recovered
  • Voted Best Lawyers in America┬« for Ten Years Running
  • David Meyer is President of Public Investors Advocate Bar Association (PIABA)
  • Over a Thousand Investor Claim Cases Since 1999
  • Exclusive Focus on Investor Claims & Class/Mass Action Lawsuits
  • Deep Bench of Skilled Attorneys and Staff Members

TRUSTED BY OVER 1,000 INVESTORS

Meyer Wilson has represented over 1,000 individual investors in high-stakes claims across the country, and has recovered over $350 million on their behalves. See what former clients have to say about our team.

  • “I primarily worked with Courtney Werning throughout the process and she was informative and knowledgeable. I trusted and fully recommend Courtney and her team.”

    - S.R.
  • “The communication throughout the process was on par - and they took the time to indulge me with the various questions and opinions.”

    - R.G.
  • “What I truly appreciated was getting a great result for my Mom with limited involvement/stress on her.”

    - S.W.
  • “We went to arbitration with the other respondent and I got to see firsthand the level of professionalism and expertise the Meyer Wilson firm can deliver.”

    - D.V.
  • “Chad would take the time to call and talk with me. His explanations were always clear and concise. I also appreciate all the effort put into the details and statistics required to argue this case.”

    - P.N.
  • “Meyer Wilson was able to produce the results that we felt were obvious and warranted while several other firms and even state offices simply had trouble understanding let alone moving the case forward.”

    - B.K.
  • “My overall experience was positive and I would encourage anyone who even thinks they have been a victim of stockbroker misconduct to call David.”

    - S.T.
  • “Meyer Wilson represented me in a suit brought last year against my brokerage firm, securing a very fair and equitable settlement for me.”

    - R.G., M.D.
  • “Right from the start, you had the passion and desire to win this case for us. I have never worked with an attorney or firm as compassionate as yours. I would highly recommend your firm to anyone.”

    - G.A.
/

Talk to Our Team

Get Started with a Free Evaluation
  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please enter the name of the investment firm.
  • Please enter your preferred contact method.
  • Please enter how much you lost.
  • Please make a selection.
  • Please enter a message.