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 Microsoft, Inc. (Nasdaq:MSFT) Employee Stock Option Plan ("ESOP") participant seeking compensatory damages of $2,369,207 against Salomon Smith Barney, Inc. ("Salomon") for alleged unlawful conduct at one of its Palo Alto, California, branch offices.
K&T has been retained by large groups of Microsoft ESOP participants with damages that exceed $75 million. K&T has previously filed claims against other major brokerage firms. The suits allege that the firms failed to recommend to Microsoft ESOP participants hedging strategies to protect their concentrated position in Microsoft 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 Salomon. 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 Microsoft ESOP participants concerning the method or process used by Salomon 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 Salomon 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.