Notice to Wachovia Securities Customers: The Securities Arbitration Law Firm of Klayman & Toskes Investigates Claims of UPS

  Notice to Wachovia Securities Customers: The Securities Arbitration Law Firm
  of Klayman & Toskes Investigates Claims of UPS Employees Who Held
  Concentrated Leveraged Positions in UPS Stock Obtained Through the Managers
  Incentive Program

Business Wire

NEW YORK -- May 6, 2013

The Securities Arbitration Law Firm of Klayman & Toskes (“K&T”),, announced today that it is investigating claims of United
Parcel Service (“UPS”) (NYSE: UPS) employees who sustained losses as a result
of maintaining a concentrated, leveraged position in UPS stock. Many UPS
employees who obtained company stock as a form of compensation through the
Managers Incentive Program, and later transferred it to a full-service
brokerage firm, used the stock as collateral for a “hypo loan.” A hypo loan is
obtained by pledging securities or other assets as collateral to secure a
loan. In this case, the UPS stock served as collateral for the loan.
Unfortunately, many UPS employees were never advised of the risks associated
with maintaining a hypo loan, including the risk of a collateral call. When
the price of UPS stock declined from October 2008 through April 2009, many UPS
employees had their stock liquidated thereby decimating their investment

Additionally, in many accounts, the UPS stock represented a concentrated
position. However, many UPS employees were unaware of the risks associated
with owning a concentrated account. In some cases, brokerage firms failed to
explain how the use of risk management strategies, like a zero-cost collar,
protective put options, stop loss orders and/or an exchange fund, could have
protected the concentrated UPS position.

The effects of leverage on a concentrated stock position substantially
increase the risk to the account. Once the account receives a collateral call
as a result of the decline in share price of the UPS stock, a forced
liquidation of the stock can occur, which precludes the investor from
recovering their losses through a potential rebound in the price of UPS stock.
In many cases, had the investor’s account not been leveraged, the UPS stock
would not have been liquidated to meet a collateral call, thereby providing it
with an opportunity to recover given that the price of UPS stock came back in
value since 2009.

Current and former UPS employees who held accounts at full-service brokerage
firm and sustained investment losses in UPS stock can contact K&T to explore
their legal rights and options. 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.

If you wish to discuss this announcement or have investment losses of $250,000
or more in UPS stock, please contact Steven D. Toskes, Esquire or Jahan K.
Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956 or visit us on
the web at


Klayman & Toskes, P.A.
Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire, 888-997-9956
Press spacebar to pause and continue. Press esc to stop.