WorldCom and Smith Barney Stock Fraud. Parker & Waichman, LLP announces that it and its affiliated counsel have been retained by a substantial number of additional victims of the alleged stock fraud surrounding WorldCom (Pink Sheets: WCOEQ, MCWEQ) now operating as MCI, and Smith Barney. Parker & Waichman’s team will soon be filing a new round of claims against WorldCom and Smith Barney. These individuals have been financially injured by the fraudulent actions of WorldCom and the inappropriate advice of Smith Barney.
Former Smith Barney analyst Jack Grubman will be named in some of the claims.
Parker & Waichman will continue to represent additional plaintiffs and encourages current and former WorldCom shareholders to visit http://www.worldcomstockfraud.com and http://www.smithbarneyfraud.com for more information on these claims and to request a free case evaluation.
These additional complaints will charge that WorldCom violated section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated there under, by issuing a series of materially false and misleading statements.
WorldCom has publicly announced that instead of the $1.4 billion in profits the Company reported in 2001 and $130 million in the first quarter of 2002, it actually lost a considerable amount of money during those same periods.
Additionally these complaints will charge Smith Barney with violations of Section 15(c) of the Securities Exchange Act of 1934, as well as various state statutes, for issuing fraudulent research reports and for violating NYSE Rules 401, 472 and 476(a)(6), and NASD Rules 2110 and 2210, for issuing research reports that were not based on principles of fair dealing and good faith, did not provide a sound basis for evaluating facts, contained exaggerated or unwarranted claims about the covered companies, and/or contained opinions for which there were no reasonable bases. The misconduct of Smith Barney was detailed in the settlement announced last month by Securities Regulators and state securities officials.
Of the $1.4 billion settlement, Citigroup, the parent company of Smith Barney, will pay a total of $400 million in fines and fees that will go toward independent research and investor education programs.
Also under the settlement, Jack Grubman agreed to a $15 million fine and to be banned permanently from the securities industry.