BOCA RATON, Fla.--(BUSINESS WIRE)--The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.nasd-law.com, continues to investigate claims for current and former UPS (NYSE:UPS) employees for losses sustained from unsuitable covered call writing strategies for concentrated UPS stock positions.
In a recently filed FINRA claim [FINRA Case No. 17-00613], the Claimant, who worked with UPS for 31 years and accumulated more than 13,600 shares of the company’s shares, invested his shares after UPS went public. As a part of the investment strategy that was recommended to him, a hypo loan collateralized by his shares was taken and a call writing strategy was employed which lead to the Claimant losing his shares. The Claimant’s specific investment objective was not to lose his shares, which the firm assured him he would not. More importantly, the Claimant was earning much needed quarterly dividends, which he relied upon in his retirement. The strike prices that the stock was sold at were far too low given market conditions, and the firm failed to buy back the call options. These recommendations led to the Complainant losing all his shares as well as his much-needed dividend payments.
The sole purpose of this release is to investigate whether the covered call strategies deployed by investment firms were suitable for UPS investors with concentrated stock positions which were acquired through Managers Incentive Programs. Current and former UPS employees who held accounts at full-service brokerage firms, and have information relating to the manner in with the firm handled their concentrated, leveraged portfolios, are encouraged to contact the attorneys of Klayman & Toskes, P.A., at (888) 997-9956, or visit our firm’s website at www.nasd-law.com.
About Klayman & Toskes, P.A.
K&T is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm represents high net-worth, ultra-high net-worth, and institutional investors, such as non-profit organizations, unions, public pension funds, and multi-employer pension funds. K&T has office locations in California, Florida, New York, and Puerto Rico.