According to the complaint, plaintiff brings this action on his own behalf and on behalf of all other similarly situated individuals, pursuant to Rule 23 of the West Virginia Rules of Civil Procedure. The class consists of all Royal Bank of Canada, RBC Dain Rauscher Inc., and RBC Capital Markets Corporation (hereinafter collectively referred to as "RBC"),clients in all of RBC's aforementioned Ferris Baker Watts ("FBW”) offices who suffered complete losses of their investments in the Lehman Brothers reverse convertible investment.
Specifically, the complaint alleges that RBC owed a fiduciary duty to FBW brokers and their clients with regard to the Lehman Brothers reverse convertible structured product investment. That duty required RBC to notify the brokers in all of its newly acquired FBW branch offices regarding RBC's "no buy" policy concerning the Lehman Brothers reverse convertible structured product.
RBC breached that duty when it failed to notify its newly acquired FBW branches about RBC's "no buy" policy regarding the Lehman Brothers reverse convertible structured product in March of 2010, when it notified all of its other brokerage offices of this policy. As a direct and proximate result thereof, plaintiffs and those similarly situated have suffered sum certain pecuniary losses.
On December 8, 2010, an Order was issued by the Court staying this action, due to a pending settlement.
On January 6, 2011, the action was dismissed with prejudice to the plaintiff and defendant as having been fully compromised and settled, each of the parties hereto to bear his or its respective costs.