BOCA RATON, Fla., May 24, 2002 (PRIMEZONE) -- The law firm of Klayman & Toskes, P.A. ("K&T"), representing numerous employee stock option plan participants throughout the Technology and Telecommunications industries in securities arbitration suits, continues to pursue claims on its clients' behalf against Salomon Smith Barney, Inc. ("Salomon") for alleged unlawful conduct. Recently, a securities action requesting class action certification has been initiated in the United States District Court for the Southern District of New York on behalf of all clients of Salomon who purchased the common stock of WorldCom, Inc. (Nasdaq:WCOM) between May 15, 1999 and April 21, 2002. No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one.
K&T represents large groups of WorldCom, Inc. employee stock option plan participants with damages that are estimated to exceed $45 million. Suits have been brought against Salomon which allege that the firm failed to recommend to WorldCom, Inc. employee stock option plan participants hedging strategies to protect their concentrated position in WorldCom as a result of the exercise of their stock options through the use of margin. The claims have been brought against Salomon for mismanagement of their clients' portfolios given the fact that there were options 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 investigating 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 WorldCom, Inc. employee stock option plan participants concerning the method or process used by Salomon with regard to clients' stock options and the handling of their accounts.
Klayman & Toskes, P.A. 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 www.nasd-law.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.