Notice to Wachovia Securities Customers: The Securities Arbitration Law Firm of Klayman & Toskes Inv

Notice to Wachovia Securities Customers: The Securities Arbitration Law Firm of Klayman & Toskes Investigates Claims of UPS Employees Who Held Concentrated Leveraged Positions in UPS Stock Obtained Through the Managers Incentive Program

NEW YORK--(BUSINESS WIRE)-- The Securities Arbitration Law Firm of Klayman & Toskes ("K&T"), www.nasd-law.com, announced today that it is investigating claims of United Parcel Service ("UPS") (NYS: UPS) employees who sustained losses as a result of maintaining a concentrated, leveraged position in UPS stock. Many UPS employees who obtained company stock as a form of compensation through the Managers Incentive Program, and later transferred it to a full-service brokerage firm, used the stock as collateral for a "hypo loan." A hypo loan is obtained by pledging securities or other assets as collateral to secure a loan. In this case, the UPS stock served as collateral for the loan. Unfortunately, many UPS employees were never advised of the risks associated with maintaining a hypo loan, including the risk of a collateral call. When the price of UPS stock declined from October 2008 through April 2009, many UPS employees had their stock liquidated thereby decimating their investment portfolio.

Additionally, in many accounts, the UPS stock represented a concentrated position. However, many UPS employees were unaware of the risks associated with owning a concentrated account. In some cases, brokerage firms failed to explain how the use of risk management strategies, like a zero-cost collar, protective put options, stop loss orders and/or an exchange fund, could have protected the concentrated UPS position.


The effects of leverage on a concentrated stock position substantially increase the risk to the account. Once the account receives a collateral call as a result of the decline in share price of the UPS stock, a forced liquidation of the stock can occur, which precludes the investor from recovering their losses through a potential rebound in the price of UPS stock. In many cases, had the investor's account not been leveraged, the UPS stock would not have been liquidated to meet a collateral call, thereby providing it with an opportunity to recover given that the price of UPS stock came back in value since 2009.

Current and former UPS employees who held accounts at full-service brokerage firm and sustained investment losses in UPS stock 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 substantial 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 in UPS stock, 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.



Klayman & Toskes, P.A.
Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire, 888-997-9956

KEYWORDS:   United States  North America  New York

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bobert8478

this looks like an advertisement to me....

May 06 2013 at 11:00 PM Report abuse rate up rate down Reply