BOCA RATON, Fla., Aug. 19 /PRNewswire/ -- The Securities Law Firm of Klayman & Toskes ("K&T"), http://www.nasd-law.com/, announced today that it filed a securities arbitration claim against Merrill Lynch (NYSE:MER) on behalf of a couple, seeking damages of $5,000,000 as a result of unsuitable investment recommendations. The investors, residents of the Bahamas, held accounts with Merrill Lynch's Boca Raton, Florida branch office where they granted their Merrill Lynch financial advisor discretionary authority to manage their accounts. The suit was filed with the Financial Industry Regulatory Authority's (FINRA) Department of Arbitration.
Instead of recommending a suitable investment strategy to reduce the investors' risk, Merrill Lynch engaged in an aggressive strategy of purchasing numerous financial preferred stocks, thereby over-concentrating the Claimants' accounts, one of which had been pledged as collateral against loans taken out through Merrill Lynch. These financial preferred stocks included Deutsche Bank, Bank of America, Credit Suisse, Ambac Financial, ING Groep N.V., SunTrust Capital, and Barclays. The claim alleges that Merrill Lynch failed to disclose to the Claimants the risks of preferred stocks and over-concentration, and that their accounts faced a substantial amount of risk should the financial sector decline in value. Following the market decline in the financial sector during 2008, the Claimants suffered significant investment losses and eventually received a margin call of about $2,000,000.
Retail and institutional investors who have sustained investment losses can contact K&T to explore their legal rights and options. The attorneys at K&T are dedicated to pursuing claims on behalf of investors who have suffered investment losses. K&T, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.
If you wish to discuss this announcement or have investment losses of $250,000 or more, please 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 http://www.nasd-law.com/. DATASOURCE: Klayman & Toskes, P.A.
CONTACT: Steven D. Toskes, Esquire, or Jahan K. Manasseh, Esquire, both of Klayman & Toskes, P.A., +1-888-997-9956 Web Site: http://www.nasd-law.com/
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