This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

INVESTOR ALERT: Klayman & Toskes Notifies UPS Employees Who Sustained Losses Due To Maintaining A Concentrated, Leveraged Position In UPS Stock During 2008-2009 That Time Still Remains To Recover Your Losses Through Securities Arbitration

The Securities Arbitration Law Firm of Klayman & Toskes (“K&T”), www.nasd-law.com, announced today that it is continuing to investigate and file claims on behalf of current and former UPS (NYSE: UPS) employees who sustained investment losses as a result of maintaining a concentrated, leveraged position in UPS stock. The cases filed by K&T, which were filed against full-service brokerage firms with the Financial Industry Regulatory Authority (“FINRA”), involve current and former UPS employees who incurred margin or collateral calls in 2008 and into 2009 and were forced to liquidate their UPS shares.

Unfortunately, in many cases, the brokerage firms who facilitated the margin or collateral loans, using the concentrated UPS positions as collateral, failed to recommended risk management strategies which would have reduced or eliminated margin/collateral call risk. Despite the passage of time since the 2008-2009 time frame, UPS investors still have time to bring a securities arbitration claim to attempt to recover their investment losses. Under FINRA Rules, investors have six (6) years from the “occurrence or event” giving rise to the claim to file a claim. Accordingly, investors should act quickly to determine if they are eligible to recover their losses.

According to the claims filed by K&T, the claimants worked for many years with UPS and accumulated shares of the company through UPS’ Managers Incentive Program (“MIP”). To facilitate purchasing the UPS stock, the claimants opened Hypothecation Loans (“hypo loans”) whereby the UPS stock served as collateral. At one point, the claimants moved their hypo loan to various brokerage firms whereby the claimants continued to use their UPS stock as collateral against the loan. While the brokerage firms loaned the claimants money using their UPS stock as collateral, the firms, in many cases, failed to recommend a collar and/or protective put option as a risk management strategy to protect the claimants’ concentrated positions in UPS stock. A collar and/or protective put option would have prevented a collateral call on the loan when the UPS stock substantially declined below the loan-to-value ratio. The act of collaring the stock or implementing a protective put option would have increased the borrowing power allowing the customer to borrow up to 90% of the protective put option strike price. By doing so, this would have prevented all or most of the collateral calls that the customer received as a result of owning a concentrated UPS stock position that served as collateral against the hypo loan.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs