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The Securities Arbitration Law Firm of Klayman & Toskes Launches Investigation On Behalf of Hewlett-Packard Shareholders With L

^{Published on 2011-09-16 06:11:01 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (aK&Ta), [ www.nasd-law.com ], announced today that it is investigating claims on behalf of Hewlett-Packard (NYSE: HPQ) shareholders who sustained investment losses due to an over-concentration of shares in Hewlett-Packard. Trading at almost $50.00 per share earlier this year, Hewlett-Packard has declined about 52% and is now trading around $23 per share.

A class action lawsuit has been filed against Hewlett-Packard on behalf of purchasers of Hewlett-Packard common stock during the class period of November 22, 2010 through August 18, 2011. The class action Complaint alleges that Hewlett-Packard and certain of its officers and directors violated the federal securities laws. Specifically, adefendants concealed the following: (i) HP's business model was not working, as the Company was unable to leverage its extensive portfolio and scale of products and services in a strategically beneficial manner; (ii) webOS, the TouchPad and the PC business were not central to HP's business model and webOS would not be integrated across HP's entire product line; (iii) the TouchPad hardware was inefficient, limiting the degree of effectiveness of the webOS operating system; and (iv) defendants lacked a reasonable basis for positive statements about HP's turnaround, revenue growth rates, market share, new product and introductions.a

Potential class members who purchased Hewlett-Packard stock should consider whether they should file an individual securities arbitration claim in addition to participating in the class action. Investors who held Hewlett-Packard stock at a full service brokerage firm and sustained substantial losses may be able to recover their losses through the arbitration forum established by the Financial Industry Regulatory Authority (aFINRAa). FINRAa™s Arbitration Department is where investors, both retail and institutional, go to seek redress as a result of sales practice violations committed by their brokerage firm, including claims of over-concentration, misrepresentation and omission, unsuitable recommendations and failure to supervise.

Investors who held large, concentrated positions in Hewlett-Packard may have a claim for mismanagement of their portfolio given the fact that there were risk management strategies available that would have protected the value of their concentrated position in Hewlett-Packard. 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 azero costa 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.

If you wish to discuss this announcement or sustained substantial investment losses as a result of holding a concentrated position in Hewlett-Packard, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at [ http://www.nasd-law.com ]