CMGI Holder/Claim: Charges Merrill with Unlawful Conduct

May 1, 2003
By Nicoletta Ratti
Dow Jones Newswires

NEW YORK -(Dow Jones)- Certain shareholders of CMGI Inc. (NasdaqSC:CMGI – News) have withdrawn from a class-action suit filed against Merrill Lynch & Co. and filed an arbitration claim with the New York Stock Exchange (News – Websites) charging the brokerage firm with engaging in unlawful conduct.

In a press release Thursday, the law firm of Klayman & Toskes P.A. said the claim, which seeks $13.2 million in damages, alleges that the firm failed to recommend hedging strategies known as “zero cost” collars to properly manage a concentrated stock position owned by the CMGI shareholders.

The claims are based on the contention that the brokerage firms are under a duty to advise their clients to hedge and/or implement risk management techniques to limit the risk of concentrated stock portfolios.

Officials at Merrill Lynch and CMGI weren’t immediately available to comment on the matter.

Company Web site: http://www.nasd-law.com, http://www.cmgi.com
-Nicoletta Ratti; Dow Jones Newswires; 201-938-5400

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