The Securities Arbitration Law Firm of Klayman & Toskes Files $500,000 Claim Against Janney Montgomery Scott on Behalf of a U...
June 19 2014 - 10:36AM
Business Wire
The Securities Arbitration Law Firm of Klayman & Toskes
(“K&T”), www.nasd-law.com, announced today that it filed a
claim against Janney Montgomery Scott (“JMS”) 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 $500,000.
According to the Claim, the Claimant worked for 31 years with
UPS and accumulated shares of the company primarily through the
Managers Incentive Program. In addition to acquiring company stock,
the Claimant opened a Hypothecation Loan whereby the UPS stock
served as collateral. Eventually, the Claimant’s UPS stock was held
as collateral by JMS which offered him the Hypo Loan. While JMS
loaned Claimant money whereby his UPS stock served as collateral
against the loan, JMS failed to recommend a collar on the
concentrated UPS stock position that would have protected the
stock. JMS and its financial advisor facilitated the unsuitable
investment strategy of borrowing against a concentrated stock
position without any risk management strategies in place. By
failing to protect the concentrated position and/or recommend risk
management strategies, Claimant received margin calls which
triggered the sale of shares of UPS stock. Had JMS recommended and
then implemented a collar on the UPS stock, the Claimant would not
have received margin calls forcing the sale of his UPS stock. This
case is about the unsuitable investment strategy and failure of JMS
to recommend risk management strategies to protect the Claimant’s
UPS stock.
The sole purpose of this release is to investigate, on behalf of
our clients, the sales practices of JMS in connection with the
handling of concentrated, leveraged stock portfolios for UPS
employees. Current and former UPS employees who held accounts with
JMS, 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
United Parcel Service (NYSE:UPS)
Historical Stock Chart
From Mar 2024 to Apr 2024
United Parcel Service (NYSE:UPS)
Historical Stock Chart
From Apr 2023 to Apr 2024