The Securities Arbitration Law Firm of Klayman & Toskes Files $350,000 Claim Against Morgan Stanley on Behalf of UPS Employee...
August 29 2014 - 2:49PM
Business Wire
The Securities Arbitration Law Firm of Klayman & Toskes
(“K&T”), www.nasd-law.com, announced today that it filed a
claim against Morgan Stanley 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
$350,000.
According to the Claim, the Claimant worked for over 30 years
with UPS and accumulated shares of the company through UPS’
Employee Stock Purchase Plan and Managers Incentive Program.
Claimant also opened a Hypothecation Loan (“hypo loan”) whereby the
UPS stock served as collateral. The UPS stock and loan eventually
were transferred to Morgan Stanley. While Morgan Stanley loaned
Claimant money using his UPS stock as collateral, Morgan Stanley
failed to recommend a collar and/or protective put option as a risk
management strategy to protect Claimant’s concentrated position in
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. Morgan
Stanley, looking to make money on the loan, facilitated the
unsuitable investment strategy of borrowing against a concentrated
stock position without a collar and/or protective put option in
place. By failing to protect the concentrated position and/or
recommend risk management strategies, Claimant received collateral
calls which triggered the sale of his UPS stock. This case is about
the failure of Morgan Stanley to collar and/or protect Claimant’s
UPS stock which represented a substantial portion of his life
savings.
The sole purpose of this release is to investigate, on behalf of
our clients, the sales practices of Morgan Stanley in connection
with the handling of concentrated, leveraged stock portfolios for
UPS employees. Current and former UPS employees who held accounts
with Morgan Stanley, or other full-service brokerage firms, 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 or Jahan K.
Manasseh, Esquire, 888-997-9956
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