The Securities Arbitration Law Firm of Klayman & Toskes Launches Investigation On Behalf of Citigroup Shareholders With Large...
May 03 2012 - 11:10AM
Business Wire
The Securities Arbitration Law Firm of Klayman & Toskes,
P.A. (“K&T”), www.nasd-law.com, announced today that it is
investigating claims on behalf of Citigroup, Inc. (NYSE: C)
shareholders who sustained investment losses due to an
over-concentration of Citigroup stock. Since 2007, Citigroup has
declined about 90% and is now trading at a split adjusted price of
about $32 per share. On May 9, 2011, Citigroup effected a 1-for-10
reverse stock split on its common stock.
Since 2000, K&T has pioneered the representation of High Net
Worth (“HNW”) and Ultra-HNW clients who sustained investment losses
as a result of holding concentrated positions in a single security
or sector, in a full-service brokerage account. The clients we
represented and continue to represent include founders of public
companies and key employees from virtually every industry who
received large grants of stock options or Rule 144 restricted
stock. The claims, filed in the Financial Industry Regulatory
Authority (“FINRA”) Arbitration Department f/k/a NASD and NYSE,
focused 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 a concentrated portfolio directly exposes an
investor’s concentrated position to the fluctuations in the
volatile securities markets.
If you wish to discuss this announcement or sustained losses of
$1,000,000 or more as a result of holding a concentrated position
in Citigroup stock, please contact Steven D. Toskes, Esquire or
Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at
888-997-9956, or visit us on the web at http://www.nasd-law.com
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