The Securities Arbitration Law Firm of Klayman & Toskes (“K&T”),
, announced today that it is investigating potential claims on behalf of Pacific Capital Bancorp (“Pacific Capital”) (NasdaqGS:PCBC) shareholders who held concentrated positions in Pacific Capital stock with full-service Wall Street brokerage firms. On October 9, 2007, Pacific Capital stock was trading at $28.22 per share. However, by November 2009, the price of Pacific Capital stock declined over 99%, closing at under a dollar per share. As a result, many Pacific Capital shareholders who held concentrated positions in Pacific Capital sustained substantial losses.
Unfortunately, many Pacific Capital shareholders who held concentrated positions in Pacific Capital stock were never advised by their full-service brokerage firms of the risks associated with owning a concentrated account. Additionally, despite having a duty to do so, many firms failed to explain how the use of risk management strategies, like a zero-cost collar, protective put options, stop loss orders and/or an exchange fund, could have been utilized to protect the concentrated Pacific Capital stock positions.
Pacific Capital shareholders who sustained investment losses as a result of holding a concentrated position in Pacific Capital can contact K&T to explore their legal rights and options. The attorneys at K&T are dedicated to pursuing claims on behalf of investors who have suffered investment losses. K&T, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.
If you wish to discuss this announcement or have investment losses of $500,000 or more in Pacific Capital stock, 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