Anybody knows what this 'press release' means?
Notice to All Current and Former Sun Microsystems Employees From the Securities Arbitration Law Firm of Klayman & Toskes, P.A.
Tuesday May 2, 11:30 am ET
SAN FRANCISCO, May 2 /PRNewswire-FirstCall/ -- The Law Firm of Klayman & Toskes, P.A. ("K&T")( nasd-law.com ) announced today that it has filed a lawsuit before the National Association of Securities Dealers, Inc. ("NASD") Case No. 05-06365, on behalf of a Sun Microsystems, Inc. (Nasdaq: SUNW - News) employee stock option plan ("ESOP") participant who lost $2,900,000 due to an over-concentration of shares which were obtained as a result of stock option exercises. The claim seeks compensatory damages directly related to the failure to recommend risk management strategies to protect the concentrated position in company stock.
K&T represents numerous technology and telecommunications investors with concentrated positions managed by full-service brokerage firms in securities arbitration lawsuits filed before the NASD and the New York Stock Exchange ("NYSE"). The claims focus on the mismanagement of the clients' portfolios given the fact that there were risk management strategies that would have protected the value of the concentrated portfolio. Such risk management strategies include stop loss and limit orders, protective puts and collars. Stop loss orders, limit orders and protective puts provide an account with downside protection and an exit strategy should the stock decline in value. A hedge strategy, known as a "zero cost" collar, would have created a range of value that the portfolio would have maintained irrespective of the fluctuation and direction of the underlining stock price. The failure to use risk management strategies, as well as the failure to "hedge" the value of the portfolio concentrated in Sun Microsystems, Inc., directly exposed the investors' concentrated portfolio to the fluctuations in the volatile securities market.
The sole purpose of this release is to investigate, on behalf of our clients, sales practice violations of licensed brokers at various major brokerage firms. K&T is pursuing arbitration suits before the NASD and the NYSE for securities violations, including the misuse of option finance programs, the misuse of stock option plans, failure to supervise, unsuitability claims, misrepresentation and material omissions of fact. We would greatly appreciate any information from Sun Microsystems, Inc. ESOP participants concerning the method or process used by various major brokerage firms with regard to clients' stock options and the handling of their accounts.
K&T represents investors throughout the nation in securities litigation and arbitration matters. If you wish to discuss this announcement or have information relevant to our securities arbitration claims, please contact Lawrence L. Klayman, Esquire of Klayman & Toskes, P.A., at 888-997-9956 or visit us on the web at nasd-law.com .
Source: Klayman & Toskes, P.A. |
