Notice to Merrill Lynch Clients with Rampart Options Management Services Program: Klayman & Toskes, P.A. Files $500,000 Claim...
10 Juin 2016 - 11:52PM
The Securities Arbitration Law Firm of Klayman & Toskes, P.A.
(“K&T”), www.nasd-law.com, announced today that it has filed a
claim against Merrill Lynch on behalf of a UPS (NYSE:UPS) employee
for losses sustained from an unsuitable recommendation to invest in
the Rampart Options Management Services Program (“Rampart”).
The suit was filed with FINRA’s Arbitration Department and is
seeking damages of $500,000.
According to the Claim, the Claimant worked over 23 years with
UPS and accumulated shares of the company through UPS’ Employee
Stock Purchase Plan and Managers Incentive Program. Merrill
Lynch and its financial advisor recommended Rampart to facilitate
the unsuitable investment strategy of selling covered call options
on the UPS stock to produce income. Securities attorney
Steven D. Toskes explains, "Rampart’s covered call strategy
was unsuitable investment advice for a UPS investor with
low cost basis stock who did not want to have UPS stock 'called
away' and trigger a large capital gains tax.
Merrill Lynch advised the sale of call options at strike prices
that were far too low given market conditions and failed to buy
back the options to ensure the stock was not called away.
Claimant lost over 3,800 shares of his UPS stock as a result of
Merrill Lynch’s failure to recommend suitable options strategies
for concentrated stock positions.
If you are a current or former UPS employee with a Merrill Lynch
account that used Rampart’s services, and wish to discuss this
announcement or have relevant information relating to the manner in
which the firm handled concentrated portfolios, please contact
Lawrence Klayman, Esq. or Steven D. Toskes, Esq. of Klayman &
Toskes, P.A., in furtherance of our investigation at 888-997-9956,
or visit our firm’s website at www.nasd-law.com.
About Klayman & Toskes, P.A.K&T 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. K&T has office locations in California, Florida, New
York and Puerto Rico.
Destination:
http://nasd-law.com/notice-to-merrill-lynch-clients-with-rampart-options-management-services-program-klayman-toskes-p-a-files-500000-claim-on-behalf-of-ups-employee-for-mismanagement-of-concentrated-stock-position/
Contact:
Klayman & Toskes, PA
Lawrence Klayman, Esq.
Steven D. Toskes, Esq.
888-997-9956
lklayman@nasd-law.com
stoskes@nasd-law.com
www.nasd-law.com
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