NEW YORK--(BUSINESS WIRE)--KlaymanToskes (“KT”), www.klaymantoskes.com, announced today that it is investigating damages sustained by current and former Boeing Company (NYSE:BA) (“Boeing”) employees who held large, unhedged concentrated positions in Boeing stock and received margin calls resulting in the forced sale of stock. The investigation focuses on full-service brokerage firms’ negligence and mismanagement of leveraged concentrated positions.
Investment portfolios holding large concentrated stock positions carry significant downside risks, especially when leveraged by a margin loan. Full-service brokerage firms whose customers hold large concentrated stock positions have a duty to ensure that their customers understand the risks associated with concentration and to disclose and recommend the availability of risk management strategies, such as a “zero cost” collar, which can be used to protect the value of a concentrated portfolio. The failure to use risk management strategies as well as the failure to “hedge” the value of a concentrated portfolio directly exposes an investor’s concentrated position to fluctuations in the volatile securities markets. Since trading as high as 391.00 per share in September 2019, the price of Boeing stock dropped to 89.00 on March 18, 2020, a decline of 77%. Boeing is currently trading around $146.87 per share.
The sole purpose of this release is to investigate whether strategies deployed by full-service brokerage firms were suitable for Boeing employees with leveraged, concentrated stock positions. Boeing shareholders who held accounts at full-service brokerage firms, and have information relating to the manner in which the firm handled their concentrated, leveraged portfolios, are encouraged to contact the attorneys of KlaymanToskes at (561) 542-5131, or visit our firm’s website at www.klaymantoskes.com.
KT 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 and multi-employer pension funds. KT has office locations in California, Florida, New York, and Puerto Rico.