JP Morgan ViacomCBS Autocallable Note Results in Significant Investor Losses
Investors who purchased a structured product from JP Morgan linked to ViacomCBS (now Paramount Global) (JP Morgan ViacomCBS Autocallable Note) may be facing devastating losses.
The structured note in question—JP Morgan’s autocallable note linked to ViacomCBS (CUSIP: 46652Y752)—was issued on June 11, 2021 with a face value of $38.4 million. Unfortunately, the note’s performance was closely tied to the share price of ViacomCBS, and the stock’s decline had a substantial impact on the final payout.
Details of the Investment
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Issue Date: June 11, 2021
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Linked Security: ViacomCBS Inc. (now trading as Paramount Global)
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Product Type: Autocallable Structured Note
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Face Value: $38.4 million
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Final Payout: $2.607 per $10 face value
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Total Loss: Approximately 73.93%
This means that an investor who put in $100,000 would have received just $26,070 at maturity—resulting in a loss of nearly $74,000.
Why Did the Investment Lose Value?
Autocallable structured products are complex, often offering enhanced yields if the underlying stock performs well—but they come with substantial risks if it does not.
In this case, ViacomCBS never hit the call price during the life of the note. At maturity, the final stock price was just 26.07% of its original value. Because of this poor performance, the structured note triggered a loss provision, drastically reducing the return of principal.
Understanding the Risks of Autocallable Notes
Structured products like this one are often marketed as offering the potential for higher returns and some downside protection, but in practice, they can expose investors to issuer credit risk, market risk, and complexity risk. Many retail investors may not fully understand how these products work or the conditions under which they can suffer significant losses.
The Financial Industry Regulatory Authority (FINRA) has previously issued warnings about the risks of structured products, especially for investors who may not have the experience or risk tolerance to navigate them.
Did Your Financial Advisor Recommend JP Morgan ViacomCBS Autocallable Note?
Brokerage firms have a duty to ensure that investment recommendations are suitable for each client, based on their risk tolerance, investment objectives, and overall financial profile. If your financial advisor recommended this ViacomCBS-linked structured note without fully explaining the risks—or if it was an unsuitable recommendation for your needs—you may be able to recover your investment losses through FINRA arbitration.
FINRA Arbitration vs. Class Action
Many investors wonder if a class action lawsuit is better than pursuing an individual FINRA arbitration claim. Generally:
- If your losses exceed $100,000, individual arbitration may be more appropriate.
- Class actions are typically better suited for smaller, uniform claims.
Free Consultation
The White Law Group is investigating potential claims involving the JP Morgan ViacomCBS structured note and other autocallable products. If you have suffered losses and would like to speak with a securities attorney about your legal options, please call us at (888) 637-5510 for a free consultation.
You can also visit www.whitesecuritieslaw.com for more information on our firm and ongoing investigations.
FAQs – JP Morgan ViacomCBS Autocallable Note
1. Why did this investment lose so much value?
The note’s performance was tied to ViacomCBS stock, which never reached the call price. At maturity, the stock was worth just 26.07% of its original value—triggering a loss of principal and resulting in a payout of just $2.607 per $10 invested.
2. Can I recover my investment losses?
Possibly. If your financial advisor failed to explain the risks or recommended the note without regard to your risk tolerance or investment objectives, you may be able to file a claim for recovery through FINRA arbitration.
3. What does it cost to speak with an attorney?
The White Law Group offers free consultations and handles most cases on a contingency fee basis, meaning there’s no fee unless we recover money for you.
