TD Ameritrade faces lawsuit over auction rate securities

Online brokerage TD Ameritrade Holding Corp. has been sued in federal court over its sale of auction rate securities.

Sheldon Silverstein, an investor, is seeking to classify the lawsuit as a class action. He says he and others were told by Ameritrade that auction rate securities were as safe as cash, but ended up with securities they can't sell.

Silverstein is seeking unspecified damages to cover investors' losses, plus interest, as well as any other "relief as the court may deem just and proper." He is seeking a jury trial.

The filing does not list a place of residence for Silverstein, and his attorney declined to say where he lives.

A spokeswoman for Omaha-based Ameritrade said Friday the company does not comment on lawsuits.