Seeking Apple shareholders who lost $750,000 or moreJanuary 31, 2013: 2:21 PM ET
Law firm investigating claims that brokerage firms failed to protect their clients
"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.