FROM THE AMERITRADE 10-Q QUARTERLY RE****T:
.........NO ****!!!!!!!....YOU HEARD IT FIRST IN MIS !!!
Legal — Matthew Elvey filed a pur****ted class action complaint against
TDA Inc. on May 31, 2007 in the United States District Court for the
Northern District of California. The complaint alleges that TDA Inc.
disclosed, inadvertently or intentionally, the e-mail addresses of Elvey
and other account holders to spammers, who then sent the account holders
e-mail solicitations promoting certain stocks. The complaint includes
claims of alleged violations of California and federal statutes and
alleged breach of fiduciary duty and requests injunctive and other
equitable relief and damages. On July 10, 2007, the plaintiff filed a
motion for preliminary injunction, which TDA, Inc. has opposed. On July
18, 2007, TDA Inc. filed a motion to dismiss the plaintiff’s amended
complaint, which the plaintiff has opposed. As disclosed in a press
release dated September 14, 2007, the Company discovered and eliminated
unauthorized code from its systems that allowed access to an internal
database. The discovery was made as the result of an internal
investigation of stock-related spam. Further, the Company commissioned
forensic data experts to assist in its investigation of this issue and
results of their combined efforts revealed that: (a) client assets held
in accounts with the Company remain secure as User IDs, personal
identification numbers and passwords were not stored in this particular
database; (b) information such as client e-mail addresses, names,
addresses and phone numbers was retrieved from this database; and (c)
while more sensitive information like account numbers, date of birth and
social security numbers is stored in this database, the Company has
discovered no evidence that it was taken. The Company hired a third party
to investigate and monitor for identity theft. The third party found no
evidence of identity theft as a result of this issue. Brad Zigler filed a
lawsuit against TDA, Inc. on September 26, 2007, in the same
jurisdiction. Zigler’s complaint is on behalf of a pur****ted nationwide
class of accountholders. The factual allegations of the complaint and the
relief sought are substantially the same as those in the Elvey lawsuit.
The parties to both lawsuits are engaged in settlement discussions.
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