NEW YORK--(BUSINESS WIRE)--National investment fraud law firm, KlaymanToskes (“KT”), continues its investigation into damages of more than $500,000 sustained by investors who held large positions in Chesapeake Energy (NYSE:CHK) stock at full-service brokerage firms. Investment portfolios holding large positions can carry significant downside risks. The investigation focuses on full-service brokerage firms’ negligence and failure to supervise the management of large concentrated positions that resulted in investors suffering substantial losses.
Investors may have accumulated concentrated investments in Chesapeake Energy stock, due to their participation in employer-sponsored plans, financial advisor recommendations, or merger acquisitions. No matter what the reason for maintaining a concentrated stock position, a brokerage firm and its financial advisors must recommend suitable risk management strategies to protect the value of any concentrated stock position held in a financial brokerage account. Chesapeake Energy recently underwent a 1:200 reverse split and it filed for Chapter 11 Bankruptcy on Sunday, June 28, 2020, for protection from creditors related to $7 billion in debt. Shares of Chesapeake Energy are down 93% for the year.
If you made self-directed trades in your investment account with E-Trade, TD Ameritrade, Charles Schwab, Fidelity, or Interactive Brokers, or another self-trading platform that was not being managed by a registered investment advisor, this investigation does not apply to you.
The sole purpose of this release is to investigate whether strategies deployed by investment firms were suitable for Chesapeake Energy investors with large stock positions or were invested primarily in a single stock or single sector. Chesapeake Energy investors who held accounts at full-service brokerage firms, and have information relating to the manner in which the firm handled their accounts are encouraged to contact Lawrence L. Klayman, Esq., at (561) 542-5131, and download our Special Investor Report.
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. KT has office locations in California, Florida, New York, and Puerto Rico.