The Securities Arbitration Law Firm Of Klayman & Toskes Files $4,000,000 Claim Against Wells Fargo Advisors On Behalf Of A UPS Employee As It Continues To Investigate Claims On Behalf Of Current And Former UPS Employees
The Securities Arbitration Law Firm of Klayman & Toskes (“K&T”), www.nasd-law.com, announced today that it filed a securities arbitration claim against Wells Fargo Advisors on behalf of a UPS (NYSE: UPS) employee for losses sustained as a result of maintaining a concentrated, leveraged position in UPS stock. The claim seeks damages of $4,000,000. The suit was filed with the Financial Industry Regulatory Authority’s (“FINRA”) Office of Dispute Resolution.
According to the Claim, the Claimant worked for over 40 years with UPS and accumulated over 234,000 shares of the company through UPS’ Employee Stock Purchase Plan and Managers Incentive Program. To facilitate purchasing the stock, a Hypothecation Loan (“hypo loan”) was opened whereby the UPS stock served as collateral. At one point, the Claimant moved his hypo loan to Wells Fargo and a Note and Security Agreement was executed with Wells Fargo. While Wells Fargo loaned Claimant money using his UPS stock as collateral, Wells Fargo failed to recommend a collar and/or protective put options as a risk management strategy to protect Claimant’s concentrated position in UPS stock. At one point, Claimant’s UPS stock was valued at over $16,000,000. A collar and/or protective put option would have prevented a collateral call on the loan when the UPS stock declined substantially below the loan-to-value-ratio. Wells Fargo, looking to make money on the loan, facilitated the unsuitable investment strategy of borrowing against a concentrated stock position without a risk management strategy in place. By failing to protect the concentrated position, Claimant received a collateral call which triggered the sale of his UPS stock.
The attorneys at K&T are dedicated to pursuing claims on behalf of investors who have suffered substantial investment losses. K&T, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV