SOURCE: Klayman & Toskes

June 05, 2009 17:36 ET

The Securities Law Firm of Klayman & Toskes Files Arbitration Claim Against Citigroup on Behalf of Investors Whose Accounts Were Over-Concentrated in Preferred Financial Stocks

NEW YORK, NY--(Marketwire - June 5, 2009) - The Securities Law Firm of Klayman & Toskes ("K&T"), www.nasd-law.com, announced today that it filed an arbitration claim against Citigroup Global Markets, Inc. (NYSE: C) on behalf of two investors, for losses sustained as a result of unsuitable investment recommendations. The suit was filed with the Financial Industry Regulatory Authority's (FINRA) Department of Arbitration. Instead of recommending a conservative investment strategy to reduce the investors' risk, Citigroup recommended a strategy that concentrated the investors' assets in preferred financial stocks, including Citigroup, Fannie Mae (NYSE: FNM), Bank of America (NYSE: BAC), Deutsche Bank (NYSE: DB) HSBC (NYSE: HBC), ING Groep (NYSE: ING), Barclays (NYSE: BCS), Credit Suisse (NYSE: CS), and Merrill Lynch (NYSE: MER). This unsuitable strategy resulted in accounts that were over-concentrated in a single sector. As a result, the investors sustained damages in excess of $2.5 million.

The claim filed against Citigroup focuses on the broker's recommendation to purchase numerous preferred banking stocks, representing that they were conservative fixed income products. However, what resulted was an over-concentration in the financial sector. When the markets crashed in 2008, the majority of the clients' accounts also declined significantly in value, given the substantial exposure to the financial sector. In addition to the over-concentration claim, the preferred stocks had no downside protection whereby risk management strategies could have been used to prevent extreme losses.

Retail and institutional investors who have sustained investment losses can contact K&T to explore their legal rights and options. The attorneys at K&T are dedicated to pursuing claims on behalf of investors who have suffered investment losses. K&T, 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 investment losses of $200,000 or more, 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
    Jahan K. Manasseh, Esquire
    Klayman & Toskes, P.A.
    888-997-9956
    http://www.nasd-law.com