Tan Kin Lian's Blog: Difficulty of forming class action for Pinnacle investors

Sunday, October 04, 2009

Difficulty of forming class action for Pinnacle investors

Dear Mr Tan,
I have been advised by few people to approach you for advice with regards to the Early Redemption of the Pinnacle Notes Series 1 (S1) by Morgan Stanley on 21 Aug 09.

Briefly, sometime in Aug 2006, my financial advisor approached me and recommended the Pinnacle Notes. Trusting the security firm and my financial advisor's assurance that this was a low risk product, we proceeded to purchase the Pinnacle Notes.

After the collapse of Lehman Brothers, we started receiving adhoc updates from the security firm in relation to the Pinnacle Notes. The update on the Early Redemption on 21 Aug 09 showed a meager 0.57388% payout.

I heard that there is an action group engaging lawyers to file a civil suit. I will like to seek your advice, as well as to find out more in order to assess what is a better option for me in pursuit of a settlement.

REPLY
To my knowledge, the investors of the Pinnacle Notes are not able to organise a class action. Many investors are in the same situation as you, and they are also at a loss. Some have lodged complaint at FIDREC and in nearly all cases, their complaint has been rejected by FIDREC.

Honestly, I do not know what you can do now. I tried to get the Government to help the same investors who were misled, but they also refused.

6 comments:

A Tan said...: Waz so difficult foer a gp of Pinnacle Investors to get a copy of the MIAG writ etc from High Court office. Juz time and photocopying charges.

If too busy then pay for service. Court sraff will give contact for private contractor.

Then get lawyer to study to see if MIAG docs can be copied.

So easy leh. Qn of time, $, and determination.

Apathy and stingeness has a cost: no one respects you. Justice has to fought for, not petitioned for.; October 04, 2009 6:15 PM
Anonymous said...: Mr Tan,

I remember sometime ago u organised a petition to PM to consider to settle the MB saga like the HK does (at least 70% compensation). You also mentioned that this petition was forwarded to MAS.

Is this issue considered closed without any response from MAS? (I may have missed the thread). Or are we still awaiting a response from MAS?; October 04, 2009 11:37 PM
Tan Kin Lian said...: MAS has replied that they do not wish to meet me or the petitioners. Their reply is posted in my blog. Search for it.; October 05, 2009 12:30 AM
Anonymous said...: I believe the notes holder must understand Mr. Tan has done his part and FIDREC is a dead end. Notes holders must understand they have to put in effort and fund in order to get their money back. I hope there will be more legal actions to show people are very upset with the inaction of the authorities.; October 05, 2009 10:42 AM
Anonymous said...: I understand that Pinnacle Notes holders are one of the earliest to setup a committee after TKL's HL Park gathering. As far as I know, they have met a few lawyers and due to the steep cost asked by the lawyers and they do not have the critical mass, it stopped there. Hope committee member reading this can provide an update as mine is about 6 months old.; October 05, 2009 6:09 PM
Anonymous said...: Mr Tan only can change things if he becomes the PM or President of S'pore. The current team use a wash hand approach when things go wrong. If GCT wife also lost money then may be a different story. I'm one victim of Pinnacle. Sigh...; October 08, 2009 6:35 PM