NEW YORK, Aug. 1, 2008 (PRIME NEWSWIRE) -- After civil fraud charges relating to auction rate securities were filed against Merrill Lynch (NYSE:MER) by Massachusetts' Secretary of State, the Securities Law Firm of Klayman & Toskes, P.A. (http://www.nasd-law.com) said today that it expects investor claims against Merrill Lynch to increase substantially. In Massachusetts' complaint, the State alleged that Merrill Lynch co-opted "supposedly independent" research associates to aid them in dumping auction rate securities on the investing public. The lawsuit was filed about a month after Massachusetts filed civil fraud charges against UBS (NYSE:UBS) for its auction rate securities practices.

The case against Merrill Lynch appears to involve allegations of corrupt research reports regarding auction rate securities. Many of the internal Merrill Lynch e-mails obtained by Massachusetts are eerily similar to those uncovered during the internet bubble of the early 2000's which issued positive research reports on various tech stocks to the general public, while behind the scenes, Merrill's analysts lambasted the same securities. According to Massachusetts' Secretary of State, William Galvin, "We've seen a corruption of research. This is an issue that many of us on the enforcement side have seen years ago, and it's the same pattern."

According to recent reports, in August of 2007, a Merrill Lynch fixed-income research analyst issued a report which raised concerns regarding auction rate securities. When Frances Constable, a managing director of Merrill Lynch's auction rate securities desk, caught wind of the research analyst's report, she issued an e-mail stating: "I had not seen this piece until just now and it may single handedly undermine the auction market. If you are getting any calls, please let me know. I have asked for an immediate clarification to be published and a retraction of this."

Presently, Klayman & Toskes continues to file arbitration claims with the Financial Industry Regulatory Authority ("FINRA"), against major Wall Street brokerage firms regarding unsuitable recommendations in auction rate securities. Since the auction rate securities crisis began in February of 2008, Klayman & Toskes has received numerous inquiries from investors who no longer have access to money frozen in auction rate securities.

Klayman & Toskes continues to investigate the sales practices of several Wall Street brokerage firms in connection with their marketing of auction rate securities, including Merrill Lynch and UBS. Klayman & Toskes' investigation is focused on investors who purchased auction rate securities as well as individuals who have information regarding the sales practices/marketing of auction rate securities by Wall Street brokerage firms.

The attorneys at the Law Firm of Klayman & Toskes are dedicated to aggressively pursuing claims on behalf of investors who purchased auction rate securities. Klayman & Toskes, 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 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, or visit us on the web at http://www.nasd-law.com.

CONTACT:  Klayman & Toskes, P.A.
          Steven D. Toskes, Esquire
          Jahan K. Manasseh
          888-997-9956