NEW YORK, March 11, 2008 (PRIME NEWSWIRE) -- Levi & Korsinsky, LLP (www.zlk.com) is investigating alleged securities fraud in connection with the sale of Auction Rate Securities by Citigroup, Inc (NYSE:C), Bear Sterns (NYSE:BSC), Goldman Sachs (NYSE:GS), J.P. Morgan Securities, Lehman Brothers Holdings (NYSE:LEH), Merrill Lynch (NYSE:MER), Morgan Stanley (NYSE:MS), RBC Dain Rauscher, Wachovia Corp. (NYSE:WB), UBS (NYSE:UBS), H&R Block (NYSE:HRB), E*Trade (Nasdaq:ETFC)(collectively "Broker-Dealers").
On May 31, 2006, an investigation conducted by the Securities Exchange Commission ("SEC") revealed that the Auction Rate Securities were manipulated by certain broker-dealers conducting the auctions. Among other things, the SEC alleged that these broker-dealers improperly intervened in sales and collaborated with favored customers by asking them to bid at auctions and then compensating them with higher-than-clearing rates in the secondary market. The broker-dealers engaged in such market manipulations in order to support the "no failed auction" marketing claim so that investors would believe the Auction Rate Securities auction market was healthier than it actually was. As a result, certain of the Broker Dealers described above paid a total of $13 million in fines, were censured by the SEC and ordered to "cease and desist" from committing future violations.
Any individuals who purchased Auction Rate Securities from the Broker-Dealers may have legal rights to recover for any damages incurred. Information about Auction Rate Securities is available at www.auctionratehelp.com.
For further information concerning your legal rights, please contact Eduard Korsinsky, Esq. or Juan E. Monteverde, Esq. of Levi & Korsinsky, LLP at 212-363-7500 or via e-mail at info@zlk.com.
Levi & Korsinsky, LLP has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud. Levi & Korsinsky, LLP represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.