Click here to contact us
Home About Us News Alerts Articles Caveat Emptor SNSFE News Contact Search
Register FreeOpinion

FC Investor
World Wide Web


2004-2008 Alerts


2008 Alerts
2007 Alerts
2006 Alerts
2005 Alerts
2004 Alerts
2003 Alerts
2002 Alerts
2001 Alerts
2000 Alerts
1999 Alerts
1998 Alerts
1997 Alerts


2007 Alerts
2006 Alerts
2005 Alerts
2004 Alerts
2003 Alerts
2002 Alerts
2001 Alerts
2000 Alerts
1999 Alerts
1998 Alerts
1997 Alerts


2008 Alerts
2007 Alerts
2006 Alerts
2004 Alerts
2000 Alerts


2007 Alerts
2002 Alerts
2001 Alerts
2000 Alerts


2001 Alerts
2000 Alerts
1998 Alerts


Back to Investment Alerts


Citigroup Global Markets (Smith Barney) Liable Twice for Exercise and Hold Award and Jack Grubman's Manipulation of WorldCom Value

Recently a NASD arbitration panel in Chicago, IL ordered Citigroup to pay $325,000 in compensatory damages, $97,500 in attorneys' fees and $29,863.64 in costs. An expert testified that the exercise and hold strategy for handling non-qualified stock options is almost always unsuitable, that Jack Grubman manipulated his valuation methodologies to double his valuation on WorldCom in the face a deteriorating fundamentals at WorldCom and that the investors suffered $325,000 in market adjusted losses.

Similarly, recently a NASD arbitration panel in Tampa, FL ordered Citigroup to pay $462,500 in compensatory damages, plus at least $74,000 in prejudgment interest. An expert testified that Jack Grubman manipulated his valuation methodologies to double his valuation on WorldCom in the face a deteriorating fundamentals at WorldCom.

Source: FinancialCounsel.com





   
 
 
 
 



About Us | News | Alerts | Articles | Caveat Emptor | SNSFE News | Contact | Search
Register | Free Opinion

Sponsored by James J. Eccleston, an attorney representing stockbrokers, financial planners and investors nationwide in arbitration, litigation and regulatory matters, and a shareholder with the law firm Shaheen, Novoselsky, Staat, Filipowski & Eccleston P.C.(www.snsfe-law.com). This Web site contains material of general interest. It is neither intended to, nor constitutes, either legal advice or investment advice. Always consult an attorney and/or investment advisor when building and protecting your wealth.

All content Copyright © 2008 Advocate Capital Management, Inc. except where noted. All rights reserved.

20 North Wacker Drive, Suite 2900, Chicago, Illinois 60606
Telephone: 312-621-4400   |   Fax: 312-621-0268