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Michelman & Robinson Creates Special Task Force Dedicated To Resolving ARS Calamity

April 21, 2008

Top California law firm Michelman & Robinson, LLP (“M&R”) recently created a special task force dedicated to assisting investors, both corporate and legal alike, and conversely brokerage firms, in resolving the legal and financial dilemmas that the auction-rate securities (“ARS”) debacle has levied on them.

After the $330 billion market for ARS notes shocked investors by grinding to a halt in February, holders of these notes were left with frozen assets and vulnerable to devastating possibilities. Although investors and brokerage firms alike believed that ARS instruments were as safe as liquid cash, the opposite proved true when auctions began to fail en masse.

On the cutting edge of the ARS predicament, M&R is uniquely positioned as experienced lawyers assisting not only businesses in resolving their claims with firms, but the brokerage firms themselves. Currently representing a number of ARS investors, M&R holds a precise expertise and knowledge surrounding the ARS dilemma that its competitors, less familiar with the complexities, do not. As a result, M&R Partner Sanford Michelman created a special task force to assist both businesses and brokers in resolving the claims.

“It is our goal to continue to assist our clients with practical solutions so as to allow them to continue their business operations or personal needs without instituting litigation, if possible. We have been able to effectively avoid litigation and turn these “illiquid” investments into liquid investments in some manner. Given our vast understanding of the situation and relationships with the banks, we have been able to find practical solutions,” says Michelman.