The Securities Arbitration Law Firm of Klayman & Toskes Files $3.5 Million Claim Against Wells Fargo
May 8th 2013 12:35PM
Updated May 8th 2013 12:38PM
The Securities Arbitration Law Firm of Klayman & Toskes Files $3.5 Million Claim Against Wells Fargo Advisors On Behalf of a Former UPS Employee As It Continues To Investigate Claims on Behalf of Current and Former UPS Employees
NEW YORK--(BUSINESS WIRE)-- The Securities Arbitration Law Firm of Klayman & Toskes ("K&T"), www.nasd-law.com, announced today that it filed a securities arbitration claim against Wells Fargo Advisors on behalf of a former UPS (NYS: UPS) employee for losses sustained as a result of maintaining a concentrated, leveraged position in UPS stock. The claim seeks damages of $3.5 million. The suit was filed with the Financial Industry Regulatory Authority's ("FINRA") Office of Dispute Resolution.
According to the Claim, the Claimant worked over 22 years with UPS and accumulated over 200,000 shares of the company through UPS' Employee Stock Purchase Plan and Managers Incentive Program. To facilitate the purchase of UPS stock, a Hypothecation Loan ("hypo loan") was established whereby the UPS stock served as collateral. The hypo loan was eventually moved to Wells Fargo. While Wells Fargo loaned the Claimant money using his UPS stock as collateral, the firm failed to recommend a collar and/or protective put options as a risk management strategy to protect the Claimant's concentrated position in UPS stock. A collar and/or protective put options would have prevented a collateral call on the loan when the UPS stock substantially declined below the loan-to-value-ratio. Wells Fargo, 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 options in place. By failing to protect the concentrated position, the Claimant received a collateral call which triggered the sale of his UPS stock.
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 $100,000 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.
Klayman & Toskes, P.A.
Steven D. Toskes, Esquire, 888-997-9956
Jahan K. Manasseh, Esquire, 888-997-9956
KEYWORDS: United States North America Florida New York
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