SAN FRANCISCO, Nov. 1, 2002 (PRIMEZONE) -- The law firm of Klayman & Toskes, P.A. ("K&T") (http://www.nasd-law.com), representing numerous employee stock option plan participants throughout the Technology and Telecommunications Industries in securities arbitration lawsuits, has filed suit before the New York Stock Exchange ("NYSE") on behalf of a Cisco Systems, Inc. (Nasdaq:CSCO) Employee Stock Option Plan ("ESOP") participant seeking compensatory damages of $1,204,101 against UBS/PaineWebber ("PaineWebber") for alleged unlawful conduct at its San Mateo, California branch office.
K&T has been retained by large groups of ESOP participants with damages in the hundreds of millions. K&T has previously filed claims against PaineWebber and other major brokerage firms. The suits allege that the firms failed to recommend to Cisco Systems ESOP participants hedging strategies to protect their concentrated position in Cisco Systems as a result of the exercise of their stock options through the use of margin. The claims focus on the firm's mismanagement of their clients' portfolios given the fact that there were option strategies available at the time of exercise that would have protected the value of the margined, concentrated portfolio, 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 PaineWebber. 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 Cisco Systems ESOP participants concerning the method or process used by PaineWebber with regard to clients' 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, have done business with PaineWebber or a major brokerage firm with regard to the execution of stock options, and feel you have been a victim of stockbroker misconduct 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.