Daniel R. Solin and Kevin M. Kinne Announce: Massachusetts Lawyers Win $500,000 Case Against Merrill Lynch; NASD Awards Punitive Damages to Elderly South American Couple.

Business Editors/Legal Writers

NEW YORK--(BUSINESS WIRE)--March 29, 2004

Two Berkshire County attorneys, Daniel R. Solin and Kevin M. Kinne, have obtained an Award from an NASD Arbitration Panel in excess of a half-million dollars for an elderly South American couple who had lost nearly their entire retirement savings because of inappropriate and unsuitable investment advice from their Merrill Lynch broker. Notably, the arbitrators' decision included a quarter-million dollar punitive damage award against Merrill Lynch for the company's wrongful conduct. The case has made headlines throughout South America.

The couple, Jorge and Ana Karpati, reside in Montevideo, Uruguay. The Karpatis invested their retirement money with Merrill Lynch. In late 1999, their Merrill Lynch broker in Uruguay recommended that they invest 100% of their retirement funds in risky technology stocks. The Karpatis followed his advice. When the value of technology stocks declined rapidly in 2000, the Karpatis lost hundreds of thousands of dollars.

Merrill Lynch requires its customers to submit any disputes to binding arbitration before the National Association of Securities Dealers (NASD) or the New York Stock Exchange. As a result, the Karpatis pursued their case at the NASD.

Solin, author of the book Does Your Broker Owe You Money, and Kinne, a partner at Cain Hibbard Myers & Cook, PC, represented the Karpatis in the arbitration hearings, which took place in Puerto Rico and Atlanta during January and February of 2004.

In its Award, the Panel awarded the Karpatis, $250,836 plus interest as compensatory damages and an additional $250,000 in punitive damages. The panel noted that the punitive damages were justified by the failure of Merrill Lynch to supervise the handling of retirement funds which were invested in "...a non diversified, high risk portfolio of technology and telecommunications stocks, leveraged by margin and inconsistent with Claimants' stated conservative objectives."

Solin and Kinne, who together represent investors from around the country and internationally, were especially pleased with the decision in this case. "This Award will send a clear message to the brokerage industry that it is no longer acceptable to provide investment advice that ignores the investment objectives and risk tolerance of their clients," said Solin. According to Kinne, "The Karpatis had lost almost everything. They had worked their entire lives to save for their retirement and it was gone because of poor investment advice. They did not deserve that fate. With this Award, they no longer have to live in poverty."