Apple 2.0

Covering the business that Steve Jobs built

Seeking Apple shareholders who lost $750,000 or more

January 31, 2013: 2:21 PM ET

Law firm investigating claims that brokerage firms failed to protect their clients

Screen Shot 2013-01-31 at 11.09.21 AMFORTUNE -- A press release crossed the business wires Thursday that's likely to catch the eye of many a frustrated Apple (AAPL) shareholder:

"The Securities Arbitration Law Firm of Klayman & Toskes," it begins, "announced today that it is investigating claims on behalf of Apple, Inc. shareholders who sustained investment losses due to an over-concentration of shares in Apple stock."

It's basically a solicitation for clients who lost $750,000 or more during the four-month period when Apple's shares fell from over $700 to roughly $450. The firm, which has offices in New York, Boca Raton, FL, and Newport Beach, CA, specializes in representing "High Net Worth ('HNW') and Ultra-HNW clients" who have lost a bundle in the market. According to K&T's website, it has recovered some serious money in the past: $141 million from Sunbeam Securities litigation; $75 million from Imclone Systems; $21 million from Premier Technologies.

The pitch here is that there are risk management strategies -- such as stop loss and limit orders, protective puts and collars -- that any brokerage house that bills itself as a full-service operation ought to have offered clients who had a high concentration of wealth in Apple when the stock went south.


Frankly, I can't tell whether Klayman & Toskes is trying to do the SEC's job for them or is simply engaged in some high-ticket ambulance chasing. But I'm happy not to be in a position to need their services.

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About This Author
Philip Elmer-Dewitt
Philip Elmer-DeWitt
Editor, Apple 2.0, Fortune

Philip Elmer-DeWitt has been following Apple since 1982, first for Time Magazine, and now on the Web for

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