BOCA RATON, Fla., Aug. 30, 2002 (PRIMEZONE) -- The law firm of Klayman & Toskes, P.A. ("K&T") (http://www.nasd-law.com), representing numerous employee stock option plan participants throughout the Technology and Telecommunications Industries in securities arbitration lawsuits, has recently filed suit before the New York Stock Exchange on behalf of a WorldCom, Inc. (Pink Sheets:WCOEQ) Employee Stock Option Plan ("ESOP") participant against Salomon Smith Barney, Inc. ("Salomon"), a unit of Citigroup, Inc., for alleged unlawful conduct at its Atlanta, Georgia, Peach Tree Road branch office. As of today, an Answer has not been received from Salomon.
K&T has been retained by large groups of WorldCom ESOP participants with damages that exceed $75 million. K&T has previously filed claims against Salomon, Merrill Lynch, Pierce, Fenner, & Smith, Inc. ("Merrill"), and Morgan Stanley Dean Witter ("Morgan Stanley"). The suits allege that the firms failed to recommend to WorldCom ESOP participants hedging strategies to protect their concentrated position in WorldCom as a result of the exercise of their stock options through the use of margin. The claims focus on Salomon's, Merrill's, and Morgan Stanley's mismanagement of their clients' portfolios given the fact that there were option strategies available at the time of exercise that would have protected the value of the margined, concentrated portfolio, known as a "zero cost" collar.
Numerous class action lawsuits have been filed. These actions are distinct and separate from the arbitration claims that have been filed by K&T on behalf of WorldCom ESOP participants. The sole purpose of this release is to investigate, on behalf of our clients, sales practice violations of licensed brokers at Salomon, Merrill, and Morgan Stanley. The firm is pursuing arbitration suits before the New York Stock Exchange and the National Association of Securities Dealers 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, unauthorized transactions, and excessive trading/churning of customers' accounts. We would greatly appreciate any information from WorldCom ESOP participants concerning the method or process used by Salomon, Merrill, and Morgan Stanley with regard to clients' stock options and the handling of their accounts.
K&T has offices in California, Florida and New York and represents investors throughout the nation. If you wish to discuss this announcement, have done business with Salomon, Merrill, Morgan Stanley or a major brokerage firm with regard to the execution of stock options, and feel you have been a victim of stockbroker misconduct or have information relevant to our lawsuits, please contact Lawrence L. Klayman, Esquire of Klayman & Toskes, P.A., 888-997-9956 or visit us on the web at http://www.nasd-law.com.