MIAMI, July 2, 2021 /PRNewswire/ — The notice sent by the Liquidators indicates they have taken the position that investors of variable policies, have segregated funds, and investors of fixed products, do not have segregated funds. What that would mean in practice is that investors with variable products would likely receive more, but not all, of the amount they invested back, whereas investors with fixed products would recover even less.
However, ultimately the Liquidators do not get to decide the legal classification of these funds as either segregated or not. That decision is up to the Supreme Court of Bermuda. As a result, we expect this issue will be heavily contested and litigated in the Bermuda courts. The process will likely take a few years. It is highly unlikely any group will recover all or most of their money. Courts tend not to favor one group dramatically over the other. If the variable funds were truly segregated, investors would have access to the funds now.
Litigation against the financial institutions that recommended these products can run concurrently with the Northstar Liquidation process. There is no need to wait for an outcome from the Courts in Bermuda, especially if there are Statutes of Limitations issues.
Northstar Financial Services (Bermuda) products have proved to be the opposite of secure even though financial advisors touted these fixed- and variable-rate annuity and investment products as CD-like and stable. Clearly, there were misrepresentations and omissions made.
Our firm has already filed several cases against various financial institutions for their unsuitable recommendations. Our team of experienced securities fraud attorneys is concentrating their attention and resources on fighting for our clients, including those who live abroad, that were unsuitably recommended these investments by US-based firms. We have a Spanish speaking attorney and team members to assist both our Latin American and Asian clients.
Shepherd Smith Edwards and Kantas offers free and confidential consultations. We feel strongly about these cases and offer a contingency agreement; if we are unsuccessful, the client owes no fees or expenses. At the end of the process, the investor will still hold the Northstar product, and will be entitled to whatever the Liquidator returns. We do NOT charge a fee on anything the liquidator returns to the investor.
For more information visit our Northstar Financial Services (Bermuda) FAQs page.
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SOURCE Shepherd Smith Edwards & Kantas LLP