The Securities Arbitration Law Firm of Klayman & Toskes Files $700,000 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
NEW YORK -- September 5, 2013
The Securities Arbitration Law Firm of Klayman & Toskes (“K&T”),
www.nasd-law.com, announced today that it filed a $700,000 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 suit was filed with FINRA’s arbitration
According to the Claim, the Claimant worked over 35 years with UPS and
accumulated shares of the company through UPS’ Employee Stock Purchase Plan
and Managers Incentive Program. The Claimant opened a Hypothecation Loan
(“Hypo Loan”) whereby the UPS stock served as collateral. At one point, the
Claimant moved his hypo loan to Wells Fargo Bank and a Note and Security
Agreement was executed whereby Claimant used his UPS stock as collateral
against the loan. While Wells Fargo Bank loaned Claimant money using his UPS
stock as collateral, Wells Fargo failed to recommend a collar and/or
protective put option as a risk management strategy to protect Claimant’s
concentrated position 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. By failing to protect
the concentrated position and/or recommend risk management strategies,
Claimant received a collateral call which triggered the sale of his UPS stock.
This case is about the failure of Wells Fargo to collar and/or protect
Claimant’s UPS stock which represented his life savings.
The sole purpose of this release is to investigate, on behalf of our clients,
the sales practices of Wells Fargo in connection with the handling of
concentrated, leveraged stock portfolios for UPS employees. Current and former
UPS employees who held accounts with the brokerage firm Wells Fargo Advisors,
and have information relating to the manner in which the firm handled their
concentrated, leveraged portfolios, are encouraged to 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 www.nasd-law.com.
Klayman & Toskes, P.A.
Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire, 888-997-9956
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