BOCA RATON, Fla., Aug. 30, 2002 (PRIMEZONE) -- Klayman & Toskes, P.A. ("K&T") (http://www.nasd-law.com), a nationally known law firm who has substantial experience in prosecuting securities lawsuits on behalf of Technology and Telecommunications employees, is pursuing an aggressive investigation on behalf of Corning Incorporated (NYSE:GLW) Employee Stock Option Plan ("ESOP") participants. The law firm is preparing to file claims against Advest Securities, Inc. ("Advest"), for alleged unlawful conduct.
K&T has been retained by large groups of Technology and Telecommunications ESOP participants with damages that exceed $100 million. K&T has previously filed claims against Merrill Lynch, Pierce, Fenner, & Smith, Inc. ("Merrill"), Morgan Stanley Dean Witter, Inc. ("Morgan Stanley"), Salomon Smith Barney, Inc. ("Salomon"), and UBS PaineWebber, Inc. ("PaineWebber"). The suits allege that the firms failed to recommend to ESOP participants hedging strategies to protect their concentrated position in their company's stock as a result of the exercise of their stock options through the use of margin. The claims focus on Merrill's, Morgan Stanley's, Salomon's, and PaineWebber'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 Advest, Merrill, Morgan Stanley, Salomon, and 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 ESOP participants concerning the method or process used by Advest, Merrill, Morgan Stanley, Salomon, and 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 Advest, Merrill, Morgan Stanley, Salomon, 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.