ATTENTION UPS EMPLOYEES WITH MERRILL LYNCH ACCOUNTS: KlaymanToskes Continues to Investigate Claims for UPS Employees with Los...
14 Août 2020 - 3:48PM
Business Wire
KlaymanToskes (“KT”) continues to investigate and pursue FINRA
arbitration claims against Merrill Lynch on behalf of UPS (NYSE:
UPS) current and former employees for losses sustained from an
unsuitable recommendation to employ a covered call writing
strategy.
Many UPS employees were solicited to invest with Merrill Lynch
after UPS stock went public in 1999. Merrill Lynch and its
financial advisors recommended to many UPS employees a covered call
options writing strategy, sometimes recommending the Rampart
Options Management Services Program (“Rampart”) to facilitate the
strategy that would generate income to help cover the cost of the
UPS employees’ hypo loans. The problem with this call writing
strategy was that when the UPS stock increased in price above the
option strike price, in many cases, it forced the sale of UPS
shares and/or required that the UPS shareholder buy back their
stock at a substantial cost.
UPS employees have benefitted for many years from the growth,
stability, and yield from the UPS stock. As a result, many UPS
current/former employees accumulated a substantial number of shares
that they planned to rely on during their retirement years. UPS has
maintained or increased its quarterly dividend every year since
2000, increasing the dividend payout by nearly six times over the
20-year period. As such, employees were reluctant to sell their UPS
stock. However, our firm has represented numerous former UPS
employees who were forced to sell their stock triggering a
significant tax liability from low cost basis stock and/or pay a
substantial amount of money to buy back their UPS stock from this
unsuitable call option strategy.
Today, UPS has nearly doubled in price, trading at nearly $160
per share. For any UPS shareholder who sold call options on UPS
prior to August, the increase in value could have resulted in the
investor having to buy back the call option or losing the UPS
shares.
The sole purpose of this release is to investigate the sales
practices of Merrill Lynch for its recommendation to engage in an
unsuitable covered call writing strategy. Current and former UPS
employees who held accounts at Merrill Lynch and have information
relating to the manner in which the firm handled their concentrated
portfolios, are encouraged to contact Lawrence L. Klayman, Esq., at
(561) 542-5131, and download our Special Investor Report.
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. KT has recovered
more than $185 million for investors in arbitration and more than
$300 million as counsel in investor class actions. KT has office
locations in California, Florida, New York, and Puerto Rico.
Destination:
https://klaymantoskes.com/attention-ups-employees-with-merrill-lynch-accounts-covered-calls
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KlaymanToskes Lawrence L. Klayman, Esq. (561) 542-5131
lklayman@klaymantoskes.com www.klaymantoskes.com
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