The Securities Arbitration Law Firm of Klayman & Toskes Announces that

Discussion in 'UPS Partners' started by Returntosender, Nov 16, 2010.

  1. Returntosender

    Returntosender Well-Known Member

    The Securities Arbitration Law Firm of Klayman & Toskes Announces that It is Continuing To Investigate and File Claims on Behalf of Current and Former UPS Employees Who Held Concentrated Positions in UPS Stock on Margin/Hypo Loans

    NEW YORK, Nov 01, 2010 (BUSINESS WIRE) -- The Securities Arbitration Law Firm of Klayman & Toskes ("K&T"), announced today that it is continuing to investigate and file claims on behalf of current and former UPS (NYSE: UPS) employees as a result of maintaining a concentrated, leveraged position in UPS stock. K&T continues to receive a substantial amount of inquires, and has been retained by numerous additional current and former UPS employees who sustained significant losses in UPS stock.
    According to one claim filed against Merrill Lynch, now a part of Bank of America (NYSE: BAC), the Claimant received UPS employee stock options which were exercised and deposited into his Merrill Lynch account. By 2005, the Claimant's portfolio was valued at over $3.5 million with over 90% in UPS stock. However, Merrill Lynch failed to protect the UPS stock, as they had a duty to do so, through the use of risk management strategies, like a collar, protective put options, stop loss orders and/or an exchange fund.
    In addition to holding a concentrated UPS stock position, the Claimant also had a margin loan against the portfolio exceeding $1.7 million. Over the next two years, the UPS stock maintained a price of around $70 per share until the stock substantially declined in 2009. In March 2009, the UPS stock dropped to $38 per share which triggered margin calls in the Claimant's account. Consequently, he sold over 34,000 shares of UPS stock to satisfy the calls.
    The effects of margin on a concentrated position substantially increased the risk to the Claimant's account, ultimately led to the forced liquidation of UPS stock, and precluded the Claimant from recovering his losses through a potential rebound in the price of UPS stock. Had the Claimant not been on margin, the UPS stock would not have been liquidated to meet the margin call, thereby providing it with an opportunity to recover given that the price of UPS stock came back in value since 2009. However, with the forced sale of the stock, the Claimant's investment in UPS stock no longer has the ability to recover.
    Current and former UPS employees 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 $100,000 or more, please contact Steven D. Toskes of Klayman & Toskes, at 888-997-9956 or visit us on the web at http://www.nasd-law.com.
     
  2. beentheredonethat

    beentheredonethat Well-Known Member

    This is bull. Odds are that the person quoted in article, made a ton of money on hypoing stock and borrowing at very low interest rate while UPS stock was growing at close to 20%. Then they borrowed off the increased portfolio value. That's how a lot of mgmt folks became rich in UPS stock. He probably bragged (like a lot of others I know) about how easy it was to make a ton of money off of the stock. If he's not smart enough to realize the dangers of having all his eggs in one basket (a basket on margin at that). Then he deserves to lose the money.
     
  3. j13501

    j13501 Member

    I have to say that I agree with you. My financial advisor at Merrill Lynch has always warned of the dangers of a concentrated UPS stock postion, and made suggestions to protect my holdings. We're all adults- no one can force a client to diversify or pay down their hypo loan. Then when the stock market tanks, and UPS with it, the Merrill advisor is to blame?
    Sounds like the person involved doesn't want to take responsibility for their own poor judgement. And, of course, the lawyers are like sharks, looking for any chance to sue a large company in a class action lawsuit!
     
  4. hangin455

    hangin455 Member

    All the smart people I know sold shares to pay off the hypos as soon as the stock went public. Anyone who held on to all the hypo stock when the stock price was now a whim of the public was probably a little too greedy for their own good.
    I hear ads on the radio all the time about a firm that will attempt to recover a portion of your losses "due to the negligence of your broker" - as if the brokers' had a crystal ball to know the market was going to tank!