Klayman & Toskes Files Arbitration Claim Against SunTrust

Klayman & Toskes Files Arbitration Claim Against SunTrust for
Recovery of Over $1.6 Million Frozen in Auction Rate
Securities — STI

NEW YORK, May 23, 2008 (Lawfuel) — The Securities Law Firm of
Klayman & Toskes, P.A. (“K&T”) (http://www.nasd-law.com) announced
today that it filed a lawsuit against SunTrust (NYSE:STI) with the
Financial Industry Regulatory Authority’s (“FINRA”) Office of Dispute
Resolution. According to the Complaint, SunTrust recommended that the
Claimants purchase Nuveen Auction Rate Preferred Securities (“ARPS”).
SunTrust represented the ARPS to be conservative, safe, liquid
investments. Not having been advised of the risk and ability for
illiquidity, the Claimants purchased the Nuveen ARPS. Today, about $1.6
million of the Claimants’ money remains frozen due to continued failed
auctions. Had all of the risks associated with the Nuveen ARPS been
fully disclosed to the Claimants, they would not have invested millions
of dollars into these securities.

The arbitration claim filed against SunTrust seeks rescission as a
result of the brokerage firm’s misrepresentations and omissions, breach
of fiduciary duty, breach of contract, fraud, constructive fraud,
negligence and gross negligence, violation of NASD and NYSE rules,
violation of state securities laws, and violation of The Securities
Exchange Act of 1934. Many brokerage firms, including SunTrust,
marketed Auction Rate Securities to be “safe”, “liquid” investments
that were akin to money market funds. However, since the week of
February 11, 2008, many auctions have failed and the clients’
investments have become illiquid as buyers have become scarce. As a
result, many investors no longer have access to their money which was
placed in Auction Rate Securities.

Many investors of Auction Rate Securities did not envision the scenario
in which they would have to retain the services of an attorney to
withdraw their money. Unfortunately, however, to the extent investors
cannot liquidate their Auction Rate Securities on the secondary markets
that have opened up, it appears that legal action is necessary if
investors are to see a return of their money in the near future. In
that regard, Klayman & Toskes reminds investors of the benefits of
filing an individual arbitration claim, as opposed to participating in
a class action lawsuit. By participating in a class action lawsuit, an
investor will most likely recover only pennies on the dollar. In 2003,
Klayman & Toskes conducted a study of securities arbitration versus
class action. The study concluded that investors who file a securities
arbitration claim may obtain an overall higher rate of recovery as
opposed to participating in a class action lawsuit. To view the full
results of the comparison, please visit our web-site:
http://www.nasd-law.com/documents/classvr.pdf

Klayman & Toskes continues to file arbitration claims on behalf of
numerous investors who no longer have access to their money invested in
Auction Rate Securities. In addition to the lawsuit filed against
SunTrust, the Law Firm most recently filed claims against Wachovia
(NYSE:WB) and Banc of America (NYSE:BAC). If you invested $500,000 or
more in Auction Rate Securities, including Nuveen Auction Rate
Securities, from SunTrust, Wachovia, Banc of America, or other
brokerage firm, or if you have information relevant to our claims,
please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire
of Klayman & Toskes, P.A., at 888-997-9956. You may also visit us on
the web at http://www.nasd-law.com.

Klayman & Toskes, P.A., an experienced and nationally recognized
securities litigation law firm, continues its representation of
investors throughout the world in securities arbitration and litigation
matters against major Wall Street brokerage firms.

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