Facts

Claimant, the 1997 Robert H. Lorsch Family Trust, filed a complaint against Salomon Smith Barney n/k/a Citigroup Global Markets Inc. and McRee Winston Smith. The allegations were based on respondents' alleged recommendations to buy or sell certain securities. Claimant also alleged that the claimant trustee had received communications from respondents' telecom analyst, and that the claimant trustee had relied on the analysis provided by the respondents' analyst to invest in various companies, including Global Crossing, Yahoo and AOL. The matter was heard by a NASD Dispute Resolution Board.

CONTENTIONS:
Claimant alleged breach of contract, misrepresentation and omissions of fact, negligence, and failure to supervise. Respondents denied the allegations and asserted various affirmative defenses.

Damages

Claimant requested over $5 million in compensatory damages. Respondents requested dismissal of the claimant's claim and costs. They also requested all reference of the matter be expunged from Smith's registration records.

Result

Respondents' motion to dismiss was granted, based on claimant's failure to comply with a discovery order. The claimant's claims were dismissed with prejudice. The parties each bore their respective costs.

Other Information

Arbitration Panel: Roberta Haft, G. Timothy Haight and Barbara L. Olsen, Esq.