PART II OTHER INFORMATION
Item 1. Legal Proceedings
For information concerning the suit filed by Harris Trust and Savings
Bank (as trustee for Ameritech Pension Trust) and others against Salomon
Brothers Inc., and Salomon Brothers Realty Corporation, see the description that
appears in the second and third paragraphs under the caption Item 3. "Legal
Proceedings" on Form 10-K for the year ended December 31, 1998. In October 1999,
plaintiffs filed a petition for certiorari with the U. S. Supreme Court. The
petition seeks review of the U.S. Court of Appeals for the Seventh Circuit's
decision reversing the denial of defendants' motion for summary judgment and
dismissing the sole remaining ERISA claim against the Company.
For information concerning a purported class action in Florida against
numerous broker-dealers including Salomon Smith Barney Inc. ("SSB"), see the
description that appears in the sixth paragraph under the caption Item 3. "Legal
Proceedings" on Form 10-K for the year ending December 31, 1998. In October
1999, plaintiff filed a second amended complaint.
In March 1999, a complaint seeking in excess of $250 million was filed
by a hedge fund and its investment advisor against SSB in the Supreme Court of
the State of New York, County of New York (MKP Master Fund, LDC et al. v.
Salomon Smith Barney Inc.). Plaintiffs allege that, while acting as their prime
broker SSB breached its contracts with plaintiffs, converted plaintiffs' monies,
and engaged in tortious conduct, including breaching its fiduciary duties. In
October 1999, the Court granted in part and denied in part SSB's motion to
dismiss the complaint. The court dismissed plaintiffs' tort claims, including
the breach of fiduciary duty claims, but allowed the breach of contract and
conversion claims to stand. The Company intends to contest this lawsuit
vigorously.
Item 2. Changes in Securities and Use of Proceeds - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - None
Item 5. Other Information - None
Item 6. (a) Exhibits - None
(b) Reports on Form 8-K - None