NEW YORK, Aug. 23, 2005 (PRIMEZONE) -- The Securities Arbitration Law Firm of Klayman & Toskes, P.A. ("K&T") (http://www.nasd-law.com), representing numerous aggrieved investors throughout the nation, encourages all Delta Airlines Shareholders and Employee Stock Option Plan Participants to explore their legal options as they may be eligible to obtain a potential recovery due to the deflation of Delta Airlines, Inc. stock (NYSE:DAL). Amid bankruptcy rumors and record oil prices, many full-service brokerage house analysts have recently downgraded Delta Airlines stock from "neutral" to "sell." Experiencing a 52-week high of $52.75 per share on January 5, 2001, the price of Delta Airlines stock has now plummeted to an astounding low of $1.40 per share. If an investor maintained a concentrated position after receiving an allocation of Delta Airlines stock, or following the "exercise and hold" of Delta Airlines stock options, the value of the portfolio has probably incurred severe losses.
Unbeknownst to many investors, maintaining a concentrated position in a single stock carries with it several risks. Although there is a specific duty on the part of the investment advisor and the financial institutions they represent to manage a concentrated portfolio and the unique risks associated with this type of account, more often than not the advisor neglects to inform the customer of such risks, or of the risk management strategies available to protect the value of the concentrated portfolio. As a result, a stock holder's assets could potentially be decimated.
The risks faced by all Employee Stock Option Plan Participants who have exercised options are the same. The concentration of the retirement "nest egg," which represents for many a "lifetime" of work, into a single stock can be disastrous. For many, there is a lack of understanding that to tie one's fortunes so closely to the company they spent so many years working for could result in the loss of one's financial lifestyle. It is these uncertainties and risks that an individual would want to avoid. What purpose then could a financial advisor serve if it was not to protect against these risks through the use of diversification and hedging techniques by using stock options, or with other risk management strategies such as the use of protective puts, short sales, stop loss, or limit orders?
Accordingly, if you have suffered a loss in the value of your brokerage accounts as a result of holding a concentrated position in Delta Airlines stock either from the purchase of the stock, or following the exercise of your employee stock options, K&T strongly urges you to consider bringing suit against your individual broker/dealer in an individual securities arbitration claim before the National Association of Securities Dealers or the New York Stock Exchange. Please contact Lawrence L. Klayman, Esquire of Klayman & Toskes, P.A. at 1-888-997-9956 to discuss this investigation, your legal options and/or the possibility of pursuing an individual securities arbitration claim against your securities broker.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.