NEW YORK, March 21, 2003 (PRIMEZONE) -- The Law Firm of Klayman & Toskes, P.A. ("K&T") (http://www.nasd-law.com) represents large groups of Technology Investors throughout the country in securities arbitration lawsuits. K&T has been retained by large shareholders of CMGI, Inc. (Nasdaq:CMGI) to pursue claims in arbitration against the brokerage firms that managed their concentrated stock portfolios. The claims are based on the contention that the brokerage firms are under a duty to advise their clients to hedge and/or implement risk management techniques to limit the risk of concentrated stock portfolios.
K&T has filed numerous claims on behalf of large investors and employee stock option plan participants with concentrated stock portfolios against major securities firms who have mismanaged their clients' portfolios. The claims focus on the mismanagement of clients' portfolios, due to the fact that there were option contracts available that would have protected the value of the concentrated margined portfolio, a strategy known as a "zero cost" collar.
The sole purpose of this release is to investigate, on behalf of our clients, sales practice violations of licensed brokers at major brokerage 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. We would greatly appreciate any information concerning the method or process used by various major brokerage firms with regard to the handling of their margined concentrated stock portfolios.
Numerous class action lawsuits have been filed on behalf of CMGI investors. These actions are distinct and separate from the claims brought by the clients of K&T. K&T only represents investors in securities arbitrations on an individual basis that have suffered substantial damages. Such claims include high net worth individuals who are not appropriate for class actions. 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 securities arbitration claims, 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.