SAN FRANCISCO, July 27, 2002 (PRIMEZONE) -- The Law Firm of Klayman & Toskes, P.A. ("K&T") (http://www.nasd-law.com), represents large groups of Employee Stock Option Plan ("ESOP") participants throughout the Technology and Telecommunications Industries in securities arbitration lawsuits. The firm will continue to aggressively investigate and pursue claims for clients with recoverable damages.
K&T has filed numerous claims on behalf of Microsoft, Inc. (Nasdaq:MSFT) ESOP participants against major securities firms who have mismanaged their clients' stock options. The law firm is preparing to file additional claims on behalf of numerous other Microsoft ESOP participants. The suits allege that the brokerage firms failed to recommend to ESOP participants hedging strategies to protect their concentrated position in Microsoft stock as a result of the exercise of their stock options through the use of margin. The claims focus on the mismanagement of clients' portfolios, due to the fact that there were option contracts available at the time of exercise that would have protected the value of the concentrated margined portfolio; a strategy 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 Smith Barney, Inc. ("Salomon"), Merrill Lynch, Pierce Fenner & Smith, Inc. ("Merrill"), Morgan Stanley Dean Witter, Inc. ("Morgan Stanley"), UBS PaineWebber, Inc. ("PaineWebber") and CIBC Oppenheimer, Inc. ("Oppenheimer"). 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 ESOP participants concerning the method or process used by Salomon, Merrill, Morgan Stanley, PaineWebber, and/or Oppenheimer 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, Merrill, Morgan Stanley, PaineWebber, Oppenheimer, 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.