Law Firm: Purported Class-Action Suit Filed Vs ETrade

Law Firm: Purported Class-Action Suit Filed Vs ETrade

Last Update: 4/2/2008 3:25:22 PM

DOW JONES NEWSWIRES

ETrade Financial Corp. (ETFC) faces a purported class-action lawsuit from
investors who purchased auction-rate securities from the company from April 2,
2003, to Feb. 13, 2008.

A representative from ETrade couldn’t be immediately reached for comment.

The New York-based electronic brokerage firm is alleged to violated two section
of the Securities and Exchange Act of 1934 by deceiving investors about the
investment characteristics of auction-rate securities and the auction market.

The suit alleges that holders of auction-rate securities sold by ETrade and other
broker-dealers have been unable to liquidate their positions in these securities
following the decision by broker dealers to withdraw support for the periodic
auctions on Feb. 13.

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