Ex-Microsoft worker seeks damages from Merrill

March 28, 2006
By Jonathan Stempel
Reuters

NEW YORK (Reuters) – A law firm said on Tuesday it filed a lawsuit before the NASD on behalf of a former Microsoft Corp. (Nasdaq:MSFT – news) employee who allegedly lost $1 million because of unsuitable recommendations by Merrill Lynch & Co. (NYSE:MER – news) and its financial advisers.

Klayman & Toskes, P.A. said the claim accuses Merrill Lynch of recommending that the employee borrow money to buy Microsoft shares under the software company’s stock option program. It said this caused the employee to maintain an inappropriate, concentrated position in a single stock.

The law firm said the claim seeks compensatory damages “directly related to the unsuitable use of leverage” to exercise the options.

Merrill Lynch spokesman Mark Herr declined to immediately comment.

The NASD is the securities industry’s self-regulatory arm.

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