The Securities Arbitration Law Firm of Klayman & Toskes Files $500,000 Claim Against Merrill Lynch on Behalf of a Retired UPS...
July 21 2014 - 6:49PM
Business Wire
The Securities Arbitration Law Firm of Klayman & Toskes
(“K&T”), www.nasd-law.com, announced today that it filed a
claim against Merrill Lynch on behalf of a retired 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 over 32 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 as collateral by Merrill Lynch which offered him the
Hypo Loan. While Merrill Lynch loaned the Claimant money whereby
his UPS stock served as collateral against the loan, Merrill Lynch
failed to recommend a collar on the concentrated UPS stock position
that would have protected the stock. Merrill Lynch 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,
the Claimant received collateral calls which triggered the sale of
shares of UPS stock. Had Merrill Lynch recommended and then
implemented a collar on the UPS stock, the Claimant would not have
received collateral calls forcing the sale of his UPS stock. This
case is about the unsuitable investment strategy and failure of
Merrill Lynch 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 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, 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, 888-997-9956www.nasd-law.com
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