The Securities Arbitration Law Firm of Klayman & Toskes Launches Investigation on Behalf of James River Coal Co. Shareholders Who Held Large Concentrated Positions in James River Stock With Full-Service Brokerage Firms
The Securities Arbitration Law Firm of Klayman & Toskes, P.A. ('K&T?), www.nasd-law.com,
announced today that it is investigating claims on behalf of James River
Coal Co. (NasdaqGS: JRCC) shareholders who sustained investment losses
due to an over-concentration of shares in James River Coal Co. stock.
Since mid-2008, the price of James River Coal Co. dropped from about $59
per share and is currently trading at about $3.25 per share,
representing a decline of approximately 95%. As a result of this
decline, James River Coal Co. shareholders who held large concentrated
stock positions in James River Coal Co. have sustained substantial
losses.
Since 2000, K&T has pioneered the representation of High Net Worth
('HNW?) and Ultra-HNW clients who sustained investment losses as a
result of holding large concentrated positions in a single security or
sector, in a full-service brokerage account. The clients we represented
and continue to represent include founders of public companies and key
employees from virtually every industry who received large grants of
stock, Rule 144 restricted stock or stock options. The claims, filed in
the Financial Industry Regulatory Authority ('FINRA?) Arbitration
Department f/k/a NASD and NYSE, focused on the mismanagement of the
clients′ portfolios given the fact that there were risk management
strategies that would have protected the value of the concentrated
portfolio. Such risk management strategies include stop loss and limit
orders, protective puts and collars. Stop loss orders, limit orders and
protective puts provide an account with downside protection and an exit
strategy should the stock decline in value. A hedge strategy, known as a
'zero cost? collar, would have created a range of value that the
portfolio would have maintained irrespective of the fluctuation and
direction of the underlining stock price. The failure to use risk
management strategies as well as the failure to 'hedge? the value of a
concentrated portfolio directly exposes an investor′s concentrated
position to the fluctuations in the volatile securities markets.
The attorneys at K&T are dedicated to pursuing claims on behalf of
investors who have suffered substantial investment losses. K&T, an
experienced, qualified and nationally recognized securities litigation
law firm, practices exclusively in the field of securities arbitration
and litigation. If you wish to discuss this announcement or sustained
losses of $750,000 or more as a result of holding a concentrated
position in James River Coal Co. stock in a full-service brokerage
account, please contact Steven D. Toskes or Jahan K. Manasseh of Klayman
& Toskes, P.A., at 888-997-9956, or visit us on the web at http://www.nasd-law.com
Klayman & Toskes, P.A.
Steven D. Toskes or Jahan K.
Manasseh, 888-997-9956
http://www.nasd-law.com
