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
|
Research
|
Calendar
|
Contact
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 © 2005-2007 FinancialCounsel.com, Inc. except where noted. All rights reserved.
20 North Wacker Drive, Suite 2900, Chicago, Illinois 60606
Telephone: 312-621-4400 | Fax: 312-621-0268
|
|
