NOTICE TO WELLS FARGO CUSTOMERS WITH MARGIN ACCOUNTS: KlaymanToskes Commences Investigation into Damages Sustained by Investors Who were Forced to Sell Securities Due to Margin Calls

NEW YORK--(BUSINESS WIRE)--KlaymanToskes (“KT”), www.klaymantoskes.com, announced today that it is investigating damages sustained by investors with Wells Fargo & Company (NYSE:WFC) (“Wells Fargo”) accounts who were forced to sell securities due to margin calls. The investigation focuses on Wells Fargo’s potential negligence and mismanagement of leveraged accounts. Recently, investors quickly saw the major stock indices lose significant value after closing on Friday, February 21, 2020, at near 52-week highs. The market volatility has been precipitated by COVID-19. Many investment portfolios, like the stock indices, have also seen tremendous declines, leaving leveraged accounts especially at risk of margin calls.

The use of securities in an investment account to collateralize margin loans exposes investors to leverage, which increases the risk in an account. Margin abuse can result in excessive use of margin loans or the failure to utilize risk management strategies to protect account collateral. Therefore, Wells Fargo and its financial advisors are required to disclose to investors the risks of the use of margin. Additionally, the failure to use risk management strategies directly exposes an investor’s leveraged account to margin calls due to fluctuations in the volatile securities markets. Those margin calls may result in the forced sale of securities.

The sole purpose of this release is to investigate whether strategies deployed by Wells Fargo were suitable for investors whose investment accounts were leveraged by a margin loan and received calls forcing the sale of securities. Investors who held leveraged accounts at Wells Fargo and have information relating to the manner in which the firm handled their portfolios, are encouraged to contact the attorneys of KlaymanToskes at [phone], or visit our firm’s website at www.klaymantoskes.com.

About KlaymanToskes

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 pension funds, and multi-employer pension funds. KT has office locations in California, Florida, New York, and Puerto Rico.

Destination: https://klaymantoskes.com/notice-to-wells-fargo-customers-with-margin-accounts/