The Securities Arbitration Law Firm of Klayman & Toskes Files $200,000 Claim Against Merrill Lynch on Behalf of a UPS Employe...
April 11 2014 - 6:25PM
Business Wire
The Securities Arbitration Law Firm of Klayman & Toskes
(“K&T”), www.nasd-law.com, announced today that it filed a
claim against Merrill Lynch on behalf of a UPS (NYSE: UPS) employee
for losses sustained as a result of maintaining a concentrated,
leveraged position in UPS stock. The suit was filed with FINRA’s
arbitration department, and seeks damages of $200,000.
According to the Claim, the Claimant worked nearly 35 years with
UPS and accumulated shares of the company through UPS’ Employee
Stock Purchase Plan and Managers Incentive Program. In addition to
acquiring company stock, the Claimant opened a Hypothecation Loan
whereby the UPS stock served as collateral. The Claimant’s UPS
stock was held at Merrill Lynch which offered him the line of
credit. While Merrill Lynch loaned Claimant hundreds of thousands
of dollars whereby his UPS stock served as collateral against the
loan, Merrill Lynch failed to recommend risk management strategies
for the concentrated position in UPS stock. By failing to protect
the concentrated position and/or recommend risk management
strategies, Claimant received collateral calls which triggered the
sale of UPS stock. A collar and/or protective put option would have
prevented a collateral call on the loan when the UPS stock
substantially declined below the Loan-To-Value-Ratio. This case is
about the unsuitable investment strategy and failure of Merrill
Lynch to recommend risk management strategies to protect the
Claimant’s life savings.
The sole purpose of this release is to investigate, on behalf of
our clients, the sales practices of Merrill Lynch in connection
with the handling of concentrated, leveraged stock portfolios for
UPS employees. Current and former UPS employees who held accounts
with Merrill Lynch and have information relating to the manner in
which the firm handled their concentrated, leveraged portfolios,
are encouraged to contact Steven D. Toskes, Esquire or Jahan K.
Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956,
or visit us on the web at www.nasd-law.com.
Klayman & Toskes, P.A.Steven D. Toskes, Esquire,
888-997-9956orJahan K. Manasseh, Esquire,
888-997-9956www.nasd-law.com.
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