Law Firm of Klayman & Toskes Launches Investigation
NEW YORK, Sep 19, 2011 (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 Netflix (NasdaqGS: NFLX) shareholders who sustained investment losses due to an over-concentration of shares in Netflix. Trading at almost $300 per share earlier this year, Netflix has declined about 48% and is now trading around $155 per share. With news that subscribers are fleeing in droves, Netflix's stock price may decline even further.
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 across several industries, particularly in technology and telecommunication, 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.
The sole purpose of this release is to investigate, on behalf of our clients, sales practice violations of licensed brokers at major Wall Street brokerage firms. Investors who held Netflix stock with a full service brokerage firm and sustained significant 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 sustained substantial investment losses as a result of holding a concentrated position in Netflix, 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
Maybe some slight grounds for "I messed up". Which translates into "I'm human". "I did not want to reveal the plan an the time"
If you sue now, you should also be selling now because you expect the stock to keep falling.
If you sue and the company loses, the stockholders lose. If you sue the lawyers are the biggest single winners, Hence the reason I earned the name "gxtockholders" during their scandal/bankruptcy. If you sue, enjoy the pennies.