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NEW YORK -(Dow Jones)- Certain shareholders of CMGI Inc. (NasdaqSC:CMGI – News) have withdrawn from a class-action suit filed against Merrill Lynch & Co. and filed an arbitration claim with the New York Stock Exchange (News – Websites) charging the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