Defendant Name:
RBC Capital Markets, LLC
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Royal Bank of Canada
SIC Code:
6021
CUSIP:
78008710
Document Reference:
comp21066-rbc
Document Details
Legal Case Name
SEC v. RBC Capital Markets Corporation
Document Name
Complaint
Document Date
03-Jun-2009
Document Format
Civil Proceeding
Case Number
09-cv-05172
Federal District Court
New York, Southern District of New York
Allegation Type
Broker Dealer
Document Summary
In the Complaint, the SEC stated that: "This is a case in which RBC failed properly to disclose in communication with customers the increasing risks associated with auction rate securities ('ARS') that RBC underwrote, marketed and sold.... Through its employees and marketing materials, RBC misrepresented to many of its customers that ARS were safe, highly-liquid investments that were substitutes for cash or money-market funds. As a result, number customers invested funds in ARS through RBC that they needed or expected to have available on a short-term basis." The SEC alleged that: "During the fall of 2007 and early 2008, deteriorating market conditions and falling customer demand caused RBS, in order to prevent auction failures, to acquire much greater amounts of ARS in the auctions it managed, which in turn caused RBC's inventory of ARS to increase significantly. Consequently, during this time period, RBC considered declining to place bids for its own account at ARS auctions it managed and knew that the risk of failed auctions had materially increased. Despite RBC being aware of these material facts, RBC did not disclose them to customers."
Other Defendants in Action:
