A financial services company says a broker-dealer subsidiary has entered into a settlement agreement in connection with claims related to private placement sales.
Ameriprise Financial Inc., Minneapolis (NYSE:AMP), says its Securities America Inc. (SAI) unit and the unit’s holding company, Securities America Financial Corp., have agreed to pay about $150 million in connection with the settlement.
The settlements involve arbitration and litigation claims involving Securities America sales of private placements issued by two companies that are now in receivership, Ameriprise says in a report filed with the SEC.
“Both settlement agreements are subject to certain conditions, including participation requirements for claimants to be covered by the settlements, and preliminary and final review and court approval of the class action settlement,” Ameriprise says.
The settlement agreements call for the release of the pending claims, Ameriprise says.
Private placement investments are investments that are not registered with the SEC for sale to the public and may only be sold to institutions and to sophisticated investors.
“SAI’s participation in the settlements does not indicate any wrongdoing,” Ameriprise says.
Securities America was just one of many companies that sold the private placement securities, and the issuers of the securities have been charged by the SEC in connection with allegations of causing the conditions that led to the Securities America client losses, Ameriprise says.