OMAHA, Neb., Oct. 17, 2005 (PRIMEZONE) -- The Law Firm of Klayman & Toskes, P.A. ("K&T") (http://www.nasd-law.com) continues to pursue individual securities arbitration claims on behalf of current and former Peter Kiewit Sons', Inc. employees with an over-concentration of shares in Level 3 Communications, Inc. (Nasdaq:LVLT), which were obtained as a result of a spinoff of Kiewit's holdings. One such pending claim, NASD Case No. 2005-02048 against Smith Barney, now known as Citigroup Global Markets, Inc., is seeking to recover losses sustained in the amount of $3,700,000.00.
K&T represents numerous Peter Kiewit Sons', Inc. employees with concentrated positions in Level 3 Communications, Inc. who have claims against Wall Street brokerage firms before the New York Stock Exchange and the National Association of Securities Dealers. The claims focus on the mismanagement of the clients' portfolios given the fact that there were risk management strategies available that would have protected the value of the concentrated portfolio. Such risk management strategies include stop loss and limit orders and protective puts and collars. Stop loss orders, limit orders, and protective put options provide an account with downside protection and an exit strategy should the stock decline in value. A hedge strategy, known as a "zero cost" collar, would have created a range of values that the portfolio would have maintained irrespective of the fluctuation and direction of the underlining stock price. The failure to use risk management strategies, as well as the failure to "hedge" the value of the portfolio concentrated in Level 3 Communications, Inc., directly exposed the claimants' concentrated portfolio to the fluctuations in the volatile securities market.
The sole purpose of this release is to investigate, on behalf of our clients, sales practice violations of licensed brokers at major brokerage firms. Presently, K&T represents Peter Kiewit Sons', Inc. current and former employees, as well as numerous others, who have claims against major Wall Street brokerage firms for securities violations including the misuse of margin, the misuse of stock option plans, failure to supervise, unsuitability claims, misrepresentation and material omissions of fact and excessive trading/churning of customers' accounts.
K&T, a nationally known securities arbitration law firm, presently represents numerous investors throughout the country who have claims against major Wall Street brokerage firms for securities fraud violations. If you wish to discuss this announcement or have information relevant to our securities arbitration claims, please contact Lawrence L. Klayman at 1-888-997-9956 or visit us on the web at http://www.nasd-law.com.