Retired UPS employee files $4M suit

[cheryl]

Retired UPS employee files $4M suit - Atlanta Business Chronicle

Klayman & Toskes has sued Merrill Lynch on behalf of a retired United Parcel Service Inc. employee over losses stemming from keeping a concentrated leveraged position in UPS stock.

The Boca Raton, Fla.-based securities arbitration law firm said it filed the suit with the Financial Industry Regulatory Authority’s Office of Dispute Resolution and is seeking $4 million in damages.

The unnamed claimant worked for Atlanta-based UPS (NYSE: BAC) for 36 years and accumulated UPS shares through the package shipper’s employee stock purchase plan and managers incentive program. The shares were virtually his entire life savings, the law firm said.

 

[User Name]

http://www.browncafe.com/forum/f6/has-bank-called-your-hypo-loan-195435/

Think this is the same guy????????

 

[packageguy]

Question 1, why put all your eggs in one basket.

I think he is 2 fries short of a happy meal.

 

[quietquilter]

how do you get to the post replies to this article

 

[quietquilter]

I am a retired management person of about the same age, i would love to have a chat with you

 

[OptimusPrime]

Let me see if I have this straight. He used the stock he owned as collateral to get a loan to buy more stock? To the tune of 3.5 mil? mother was a riverboat gambler. Merril Lynch had to licking their chops. One would assume the individual was pretty wealthy already, so it was win/win. Stock goes up, he makes bank, but still pays ML back plus what I would assume hefty interest. Stock goes down, according to the contract he signed, they sell it off, get that money, plus he is on the hook for the loan still, so they can seize assets, etc.

 

[quietquilter]

I dont knowif you have it right, but yes he used his stock to hypo with, and if he listened to others had NO intention of ever paying his loan back. He probably planned to use his dividends to pay his interest due on his hypo till death to us part. Alot of management used this method. Merrill Lynch as well as Morgan Stanley who took on alot of UPS folks in this position spent hours trying to talk to you about reducing your loans and your overweighted positions. This person would never have found themselves in this position if they had followed the basic principles of moral living. You borrow you pay back, and you still have a very very nice portfolio. Greed will always win against you....always. No way this person didnt understand his position as the lawsuit states. This person is upset because in the course of greed, and market conditions he lost alot of stock to reduce his hypo. If had done right long before this, he would still have the stock he lost. Now he wants someone else to return him to his previous monetary amount......disgusting. I hope Merrill Lynch fights this all the way