NEW YORK, March 15, 2008 (PRIME NEWSWIRE) -- The Securities Law Firm of Klayman & Toskes, P.A. ("K&T") (http://www.nasd-law.com) announced today that it filed a lawsuit against Wachovia (NYSE:WB) with the Financial Industry Regulatory Authority's ("FINRA") Office of Dispute Resolution, on behalf of a disabled investor, whose money has become frozen in Nuveen Auction Rate Securities. The Statement of Claim alleges that the Claimant was unaware how Auction Rate Securities worked and was never advised by Wachovia of the possibility that his investment could become frozen if there are no buyers at the auction. The Claimant further alleges that he was harmed due to Wachovia's misrepresentations and omissions, breach of fiduciary duty, fraud, constructive fraud, negligence and gross negligence, breach of contract, violation of NASD and NYSE rules, violation of state securities laws, and violation of The Securities Act of 1933 and The Securities Exchange Act of 1934. The claim seeks rescission, the Claimant's money back, and attorneys' fees.
Many brokerage firms, including Wachovia, marketed Auction Rate Securities to be "safe", "liquid" investments that were akin to money market funds. However, in the collapse of the credit markets, many auctions have failed and the clients' investments have become illiquid as buyers have become scarce. As a result, many customers of Wachovia no longer have access to their money which was placed in Auction Rate Securities. Presently, Klayman & Toskes is also investigating the sales and marketing practices of Goldman Sachs (NYSE:GS), Lehman Brothers (NYSE:LEH) and Merrill Lynch (NYSE:MER) in connection with Auction Rate Securities.
As many investors considered their Auction Rate Securities investments to be "cash equivalents," Klayman & Toskes is cognizant that they did not envision the scenario in which they would have to hire an attorney to recover their money. As such, in addition to rescission, the lawsuits being filed by Klayman & Toskes regarding Auction Rate Securities are also seeking recovery of attorneys' fees under all applicable state statutes.
If you purchased Auction Rate Securities, including Nuveen Auction Rate Securities, from Wachovia, Goldman Sachs, Lehman Brothers, Merrill Lynch, or another brokerage firm, or if you have information relevant to our claims, please contact Steven D. Toskes, Esquire of Klayman & Toskes, P.A., at 888-997-9956. You may also visit us on the web at http://www.nasd-law.com.
Klayman & Toskes, P.A., an experienced and nationally recognized securities litigation law firm, continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca