Notice to Cisco Systems Employee Stock Option Plan Participants From The Securities Arbitration Law Firm of Klayman & Toskes, P.A.
Posted on: Friday, 3 February 2006, 12:00 CST
SAN FRANCISCO, Feb. 3 /PRNewswire/ -- The law firm of Klayman & Toskes, P.A. ("K&T") ( http://www.nasd-law.com/ ) represents Cisco Systems employee stock option plan participants in securities arbitration claims filed before the New York Stock Exchange ("NYSE"). K&T announced today that it has filed a lawsuit before the NYSE, Case No. 05-06324 claiming damages in the amount of $2,750,000. The claim seeks compensatory damages directly related to the failure to recommend risk management strategies to an employee stock option plan participant to protect the concentrated position in company stock as a result of the exercise of Cisco stock options.
According to company policy, Cisco Systems employees were restricted from certain option transactions in Cisco Systems stock acquired through the stock option plan. Despite the restrictions, Cisco Systems employees still could have utilized a hedge strategy through the use of index-based options, which is used as a proxy for the Cisco Systems stock, in accordance with the Company restrictions. The effectiveness of an index-based hedge strategy depends on the extent to which the two securities' price movements correlate with one another. It is important to note that the use of index-based options in a hedge strategy would have allowed for the protection of the Cisco Systems stock, in accordance with the Company restrictions.
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. K&T is pursuing arbitration claims before the NYSE and the National Association of Securities Dealers, Inc. ("NASD") for securities violations including over-concentration, failure to supervise, unsuitability claims, misrepresentation and material omissions of fact. K&T would greatly appreciate any information from investors concerning the method or process used to manage their concentrated holdings.
K&T represents investors throughout the nation in securities litigation and arbitration matters. If you wish to discuss this announcement or have information relevant to our securities arbitration claims, please contact Lawrence L. Klayman, Esquire of Klayman & Toskes, P.A., at 888-997-9956 or visit us on the web at http://www.nasd-law.com/ .
Klayman & Toskes, P.A.
CONTACT: Lawrence L. Klayman, Esquire of Klayman & Toskes, P.A.,+1-888-997-9956
Web site: http://www.nasd-law.com/
Source: PRNewswire
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