NEW YORK, June 18, 2008 (PRIME NEWSWIRE) -- The Securities Law Firm of Klayman & Toskes, www.nasd-law.com, said today that following its announcement that it filed a lawsuit seeking $7.9 million against Bank of America (NYSE:BAC) on behalf of an investor who purchased Auction Rate Securities, the Law Firm has received numerous inquiries from investors who are also unable to access their money which was placed in Auction Rate Securities. Accordingly, Klayman & Toskes will be continuing to pursue claims on behalf of investors who have suffered damages as a result of purchasing Auction Rate Securities.
Klayman & Toskes continues to investigate the sales practices of several Wall Street brokerage firms in connection with their marketing of Auction Rate Securities. Many brokerage firms marketed Auction Rate Securities to be "safe", "liquid" investments that were akin to money market funds. However, since the week of February 11, 2008, many auctions have failed and the clients' investments have become illiquid as buyers have become scarce. As a result, many investors no longer have access to their money which was placed in Auction Rate Securities. Klayman & Toskes' investigation is focused on investors who purchased Auction Rate Securities as well as individuals who have information regarding the sales practices/marketing of Auction Rate Securities by Wall Street brokerage firms.
Some investors have been able to sell their Auction Rate Securities on the secondary markets. However, these sales have often been achieved at deep discounts from the original purchase price of the securities. As such, those investors who have been able to sell would potentially have a claim for the reduction in the value of their securities. The arbitration claims presently being filed by Klayman & Toskes seek damages as a result of brokerage firms' misrepresentations and omissions, breach of fiduciary duty, breach of contract, fraud, constructive fraud, negligence and gross negligence, violation of NASD and NYSE rules, violation of state securities laws, and violation of The Securities Exchange Act of 1934.
Many investors of Auction Rate Securities did not envision the scenario in which they would have to retain the services of an attorney to withdraw their money. Unfortunately, however, to the extent investors cannot liquidate their Auction Rate Securities on the secondary markets that have opened up, it appears that legal action is necessary if investors are to see a return of their money in the near future. In that regard, Klayman & Toskes reminds investors of the benefits of filing an individual arbitration claim, as opposed to participating in a class action lawsuit. By participating in a class action lawsuit, an investor will most likely recover only pennies on the dollar. In 2003, Klayman & Toskes conducted a study of securities arbitration versus class action. The study concluded that investors who file a securities arbitration claim may obtain an overall higher rate of recovery as opposed to participating in a class action lawsuit. To view the full results of the comparison, please visit our web-site: http://www.nasd-law.com/documents/classvr.pdf
Klayman & Toskes continues to file arbitration claims on behalf of numerous investors who no longer have access to their money invested in Auction Rate Securities, as well as those who have realized losses following the sale of their Auction Rate Securities on the secondary markets. If you invested $500,000 or more in Auction Rate Securities, or if you have information relevant to our claims, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, 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, qualified 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.