Overview
On November 16, 2011, without admitting or denying the findings of fact or conclusions of law, E*TRADE Securities LLC ("E*TRADE") entered into a Consent Order with the State of Colorado settling an administrative proceeding brought by the Colorado Securities Division related to E*TRADE customers’ purchases of ARS through E*TRADE on or before February 13, 2008.
Who is an Eligible Investor Under the Terms of the Consent Order?
Under the terms of the Consent Order, E*TRADE has agreed to purchase, at par value, ARS purchased through E*TRADE (or entities acquired by E*TRADE) by eligible customers on or before February 13, 2008, if those ARS have failed at an auction since February 13, 2008. Eligible ARS that have been transferred to other financial institutions are included in the purchase offer, but must be transferred back and received in good order by E*TRADE. Additionally, if an eligible investor sold ARS that would otherwise be eligible for the purchase offer at a price below par after February 13, 2008, E*TRADE will reimburse the eligible investor the difference between the par value of the ARS and the price at which the eligible ARS was sold, plus reasonable interest. If an eligible investor obtained a loan through E*TRADE or an E*TRADE affiliate that was secured by ARS that were not successfully auctioning at the time the loan was taken, and paid more in interest on that loan than received in dividends or interest from the ARS while the loan was outstanding, an eligible investor may also be eligible for reimbursement of the difference between the interest paid and the interest or dividends received.
How Can I Submit a Claim if I Received an Offer Letter
as an Eligible Investor?
If you recently received an offer letter regarding the Settlement and your ARS purchase falls into any of the eligible categories under the Consent Order, you may submit the Claim Form enclosed with the offer letter to the E*TRADE Securities ARS Administrator if you wish to participate in the offer.
The Consent Order contains additional information and important details regarding the Settlement. Please review it carefully.
This website will be updated as additional information becomes available. Please check back periodically for updates.
