SOURCE: Klayman & Toskes

November 12, 2008 12:25 ET

Notice From the Securities Law Firm of Klayman & Toskes to All Investors Who Purchased Merrill Lynch Preferred Stock and Bond Offerings From 2006 to 2008

NEW YORK, NY--(Marketwire - November 12, 2008) - The Securities Law Firm of Klayman & Toskes, www.nasd-law.com, announced today that a class action lawsuit, Case No. 08-cv-09063, has been filed on behalf of investors who purchased Merrill Lynch preferred stock and bond offerings from 2006 through 2008. Potential class members should consider whether they should participate in the class action or file an individual securities arbitration claim.

The case was filed against several Wall Street brokerage firms, including Merrill Lynch, (NYSE: MER), Citigroup Global Markets (NYSE: C), Morgan Stanley (NYSE: MS) UBS Securities (NYSE: UBS) Wachovia Securities (NYSE: WB), Banc of America Securities (NYSE: BAC), Goldman Sachs (NYSE: GS), J.P. Morgan Securities (NYSE: JPM). These firms underwrote the offerings for the following preferred stock and bonds:

Merrill Lynch Preferred Stock Offerings

Merrill Lynch Capital Trust I (NYSE: MER.PRK)
Merrill Lynch Capital Trust II (NYSE: MER.PRM)
Merrill Lynch Capital Trust III (NYSE: MER.PRP)
Floating Rate Non-Cumulative Preferred, Series 5 (NYSE: MER.PRL)
8.625% Non-Cumulative Preferred, Series 8 (NYSE: MER.PRQ)

Merrill Lynch Bond Offerings

Medium Term Notes, Series C
6.11% Subordinated Notes, 1/29/37
5.70% Subordinated Notes, 5/2/17
6.05% Medium Term Notes, Series C
6.40% Medium Term Notes, Series C
Accelerated Return Notes
5.45% Medium Term Notes, Series C
6.15% Medium Term Notes, Series C
6.875% Medium Term Notes, Series C
7.78% Subordinated Notes

As underwriters, these firms were required to ensure the truthfulness and accuracy of the statements contained in the "offering materials." These underwriters solicited their clients through the use of "offering materials" to invest funds into the preferred stocks and bonds to provide Merrill Lynch with the capital needed to support its operations.

According to the Complaint the "offering materials" used to solicit investors contained material misstatements of "Merrill's financial condition and failed to disclose that the Company bore massive exposure to losses from investments." Several investors were advised that these preferred stocks and bonds were fully and unconditionally guaranteed as set forth in the "offering materials," and that they were safe, stable investments with low risk.

Klayman & Toskes reminds investors of the benefits of filing an individual arbitration claim, as opposed to participating in a class action lawsuit. By participating in a class action lawsuit, an investor will most likely recover only pennies on the dollar. However, if one has experienced significant investment losses, it may be more beneficial for them to file an individual securities arbitration claim. In 2003, Klayman & Toskes conducted a detailed study of securities arbitration versus class action. The study concluded that investors who file a securities arbitration claim traditionally obtain an overall higher rate of recovery as opposed to participating in a class action lawsuit. To view the full results of the comparison, please visit our web-site: http://www.nasd-law.com/documents/classvr.pdf

The attorneys at the Law Firm of Klayman & Toskes are dedicated to aggressively pursuing claims on behalf of investors who have suffered significant losses. Klayman & Toskes, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.

If you wish to discuss this announcement or have information relevant to our investigation, 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.

Contact Information

  • Contact:
    Steven D. Toskes, Esquire
    or
    Jahan K. Manasseh, Esquire
    Klayman & Toskes, P.A.
    888-997-9956
    http://www.nasd-law.com.