An investor may pursue breach of fiduciary duty and negligence claims against its brokerage firm, stemming from its role in alleged improprieties in the auction rate securities markets.  See Fulton Fin. Advisors, N.A. v. NatCity Invs., Inc., 2013 BL 284965, E.D. Pa., N. 09-4855, 10/15/13.  http://www.bloomberglaw.com/public/document/Fulton_Fin_Advisors_NA_v_NatCity_Invs_Inc_CIVIL_ACTION_NO_094855_.

Auction rate securities – ARS – are a category of securities that include bond-like financial instruments issued by municipalities and student loan entities.  These are generally known as “auction rate certificates” or ARCs.  In February and March 2008, the ARS markets failed entirely.  Hence, the claims resulted.

In sum, courts are reluctant to dismiss these investor claims.