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Shepherd Smith Edwards and Kantas Continues to Work With ARS Investors Not Subject to Cuomo's Settlement

HOUSTON, Nov. 20, 2008 (GLOBE NEWSWIRE) -- The law firm of Shepherd Smith Edwards & Kantas LLP (www.sseklaw.com) is still working with many investors who were not part of the agreed upon buyback by the brokerage firms involved in the marketing of Auction Rate Securities. Many clients who purchased ARS from regional brokers or banks were left behind by the big firm buy backs and are left holding billions of dollars worth of ARS.

Also left behind, were large institutional investors. Recently, Hutchinson Technology Inc. filed lawsuits against two banking giants claiming the firms represented it was safe for them to buy about $100 million in auction-rate securities when they knew otherwise.

The lawsuits, filed by Hutchinson --a maker of parts for disk drives-- target Citigroup and UBS. One suit accuses UBS of "massive fraud," alleging the company told Hutchinson the securities were safe when they were aware the market for such investment tools was suffering. According to the allegations, UBS' actions froze capital and made it impossible for Hutchinson to access $70 million in capital.

Auction-rate securities were once marketed as safe investments and an alternative to money market or other cash investments. That changed early this year with the collapse of the ARS market. Many medium to large sized companies have suffered as a result of the collapse of the auction-rate market.

Shepherd Smith Edwards & Kantas LLP has a team of attorneys, consultants and staff with more than 100 years of combined experience in the securities industry and in securities law representing both individual and corporate investors. Since 1990, we have represented thousands of investors nationwide. We have represented clients in Federal and state courts and in arbitration through the Financial Industry Regulatory Authority (FINRA), the New York Stock Exchange Inc. (NYSE), the American Arbitration Association (AAA) and in private arbitration actions. Collectively, we have represented over 1,000 investors during the last 18 in negotiation, mediation, arbitration and litigation.

CONTACT:  Shepherd Smith Edwards & Kantas LLP 
          Sam Edwards
            sedwards@sseklaw.com          
          Kirk Smith
            ksmith@sseklaw.com
          800-259-9010