NEW YORK, Nov. 4, 2002 (PRIMEZONE) -- The Law Firm of Klayman & Toskes, P.A. ("K&T") (http://www.nasd-law.com) represents large groups of Employee Stock Option Plan ("ESOP") participants throughout the Technology and Telecommunications Industries in securities arbitration lawsuits. The firm continues to aggressively investigate and pursue claims for clients with recoverable damages in the hundreds of millions.
K&T has filed numerous claims against major securities firms acting in the capacity of stock option plan administrators. The suits allege that the brokerage firms failed to recommend to ESOP participants hedging strategies to protect their concentrated position in their company's stock as a result of the exercise of their stock options through the use of margin. The claims focus on the mismanagement of clients' portfolios, due to the fact that there were option contracts available at the time of exercise that would have protected the value of the concentrated margined portfolio; a strategy known as a "zero cost" collar. The law firm's investigation has now expanded to include AOL Time Warner Inc. (NYSE:AOL) ESOP participants.
Several class action lawsuits have been filed on behalf of AOL shareholders. These actions are distinct and separate from the claims of AOL ESOP participants. The sole purpose of this release is to investigate, on behalf of our clients, sales practice violations of licensed brokers at major securities firms. 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 AOL ESOP participants concerning the method or process used by their brokerage firms with regard to employee 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 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)