Category Archives: Securities Concentration

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Notice to Clients of Andrew Yocum and Morgan Stanley: The Securities Arbitration Law Firm of Klayman & Toskes, P.A. has Commenced an Investigation in Light of Recent Regulatory Action Barring Andrew Yocum from Acting as a Broker

By | Blog, Featured Investigations, FINRA Disciplinary Actions, Oil & Gas Investments, Securities Concentration | No Comments

New York (Globe Newswire) – August 2, 2016 – The Securities Arbitration Law Firm of Klayman & Toskes¸ P.A. (“K&T”), www.nasd-law.com, has commenced an investigation in light of recent regulatory action barring Andrew Yocum (“Yocum”) from acting as a broker or otherwise associating with firms that sell securities to the public.

The Financial Industry Regulatory Authority (“FINRA”) recently barred Yocum from the securities industry after he failed to respond to a FINRA investigation.  (FINRA No.  2015048065701).  FINRA sanctioned Yocum after he refused to appear for on-the-record testimony in connection with an investigation into whether he effected unauthorized transactions, exercised discretion without written authorization, and recommended unsuitable concentrated purchases of energy sector securities to senior investors.

Numerous customer complaints were made against Yocum while employed at Morgan Stanley.  Several of these complaints included over-concentrating customer accounts in energy, oil and gas related securities as well as recommending unsuitable investments to Morgan Stanley customers.  Investment firms are required to supervise their brokers and financial advisors to ensure that they are compliant with FINRA rules.  FINRA sales practice rules related to potential violations may include misrepresentations and omissions of material facts, conflicts of interest, unsuitable investment advice, securities concentration, or failure to supervise its financial advisors.

Klayman & Toskes, P.A. Wins $2.25 Million FINRA Arbitration Award in Favor of Retired UPS Executive With Concentrated Stock Position Against Citigroup Global Markets

By | Blog, Featured Cases, FINRA Sales Practice Violations, Securities Arbitration, Securities Concentration | No Comments

Boca Raton, Florida (GLOBE NEWSWIRE) February 10, 2016 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.nasd-law.com announced a major victory today in winning a significant $2.25 million award against Citigroup Global Markets (NYSE: C) for FINRA securities arbitration Case No. 14-00199. The securities arbitration panel heard testimony for six days in Atlanta, Georgia before an award in the amount of $2.25 million was made in favor of a retired UPS executive, represented by attorneys, Steven D. Toskes, Esq. and Raymond Gentile, Esq. Citigroup has since paid the award. The Claimant alleged causes of action related to Claimant’s concentrated position in UPS stock (NYSE: UPS) including: breach of fiduciary duty; unsuitable investment strategy; failure to recommend risk management strategies  for a concentrated; leveraged position; negligence and gross negligence; and failure to supervise. Investors who suffered losses in concentrated stock positions should consider what recourse is available to recover their investment losses in stock held in full-service brokerage accounts. The Financial Industry Regulatory Authority, (FINRA) is a self-regulating organization with sales practice rules and regulations that governs the securities industry’s conduct to protect the investing public.

According to founding partner, Steven D. Toskes, “Our client worked over 37 years with UPS and accumulated shares through UPS’ Employee Stock Purchase Plan and Managers Incentive Program. Citigroup loaned funds using UPS stock and other securities as collateral but failed to implement a risk management strategy to protect the concentrated stock.” Mr. Toskes continues, “Any time a client has a concentrated, leveraged stock position, the prudent practice is to protect the downside to prevent a margin call through a risk management strategy such as a prepaid forward contract, collar or protective put option. This case was about the failure of Citigroup to protect our client’s UPS stock which represented the vast majority of his life savings”.

Concentrated stock positions represent a long term holding acquired through investment, inheritance or as an employee of the company. “Employees who participate in Employee Stock Purchase Plans (“ESPP”) can be particularly susceptible to concentrated stock positions and their respective financial advisors should ensure that these positions are protected from unforeseen market events by diversifying or hedging these positions accordingly” said Raymond Gentile, Esq. Full-service brokerage firms are obligated to give, and investors are entitled to rely upon, brokerage firms for competent, suitable investment advice concerning risk management strategies for concentrated stock positions. Brokerage firms are required to supervise the activities in brokerage accounts, and losses may be attributed to the failure to adequately supervise the financial advisor. Recommendations of unsuitable investments and/or maintaining unprotected concentrated stock positions are both causes of action that may be available to investors against their full-service brokerage firm in an individual securities arbitration claim filed with FINRA.

 

About Klayman & Toskes, P.A.

K&T is a leading securities law firm which practices exclusively in the field of securities arbitration and litigation, on behalf of retail and institutional investors such as non-profit organizations, public and multi-employer pension funds in large and complex securities matters. The Firm has offices in California, Florida, New York and Puerto Rico. Investors who have suffered investment losses from concentrated stock positions and the failure to implement risk management strategies should contact Steven D. Toskes, Esq. at 888-997-9956.

The Securities Arbitration Law Firm of Klayman & Toskes, PA Continues to Investigate UBS V10 Enhanced FX Carry Strategy Notes Following UBS Settlement with SEC for $19.5 Million

By | Alternative Investments, Blog, Featured Investigations, MArket-Linked Notes, Regulator Disciplinary Actions, SEC Disciplinary Actions, Securities Concentration, Structured Securities Products | No Comments

Boca Raton, Florida (BUSINESSWIRE) October 14, 2015 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A., www.nasd-law.com announced today that it continues to investigate UBS Financial Services (UBS) in connection with the sale of senior unsecured notes, issued by affiliated banks of parent company UBS AG (NYSE: UBS). In response to a Securities Exchange Commission (SEC) Cease and Desist Order, UBS AG submitted an Offer of Settlement which included payment of $19.5 million for violations of securities laws related to the issue and sale of senior unsecured notes linked to the V10 Currency Index. According to the SEC, “The V10 was a proprietary index, developed and sponsored by UBS that measured the performance of a hypothetical algorithmic trading strategy designed to identify and exploit trends in G10 foreign exchange forward rates.”

According to yesterday’s SEC press release, “Between December 2009 and November 2010 approximately 1,900 U.S. investors bought approximately $190 million of structured notes linked to the V10 index.” As a part of the settlement offer, UBS agreed to refrain from similar future violations and pay “disgorgement and prejudgment interest of $11.5 million” and to pay “a civil monetary penalty of $8 million.”

Klayman & Toskes, P.A. is investigating UBS’ sales practices related to senior unsecured notes linked to UBS V10 Currency Index. UBS’ violations of FINRA sales practices may include misrepresentations and omissions of material facts, conflicts of interest, unsuitable investment advice, securities concentration or the failure to supervise its financial advisors. Our investigation relates to investments in UBS senior unsecured notes issued by affiliated banks that are designed to track the UBS V10 Currency Index.

About Klayman & Toskes, P.A.

Klayman & Toskes, P.A. is an experienced, qualified and nationally recognized securities litigation law firm, investigating UBS FINRA sales practice violations related to the sale of its proprietary UBS V10 Currency Index Linked Notes. Investors who have knowledge or experience related to the sales practices of UBS and its financial advisors’ recommended investments in UBS V10 Currency Index Linked Notes, contact Steven D. Toskes, Esq. at 888-997-9956.

 

The Securities Arbitration Law Firms of Klayman & Toskes, P.A. and Carlo Law Offices Announce Investigation of Santander Securities, LLC on Behalf of Puerto Rico Investors for FINRA Sales Practice Violations

By | Featured Investigations, FINRA Disciplinary Actions, FINRA Sales Practice Violations, Puerto Rico Bond Funds, Securities Concentration | No Comments

The Securities Arbitration Law Firms of Klayman & Toskes, P.A. and Carlo Law Offices Continue to  Investigate Santander Securities, LLC on Behalf of Puerto Rico Investors for FINRA Sales Practice Violations

San Juan, Puerto Rico (BUSINESSWIRE) – October 13, 2015 – The Securities Arbitration Law Firms of Klayman & Toskes, P.A., www.perdidasenbonospr/.com/en/, and Carlo Law Offices continue to investigate Santander Securities, LLC, a subsidiary of Santander BanCorp, both wholly owned by Banco Santander, S.A. (NYSE:SAN) for securities sales practice violations. Financial Industry Regulatory Authority (FINRA), announced a $6.4 million settlement with Santander Securities, LLC for sales practice violations related to UBS Puerto Rico Bond Funds and UBS affiliated bank loans.

According to the FINRA Acceptance Waiver and Consent Order (AWC), Santander Securities, LLC agreed to settle with FINRA for $6.4 million which included, “A fine of $2.0 million” and “Restitution of approximately $4.3 million” for certain solicited transactions in Puerto Rico Bonds and close-end funds. FINRA cited that, Santander Securities, LLC had “deficient supervisory system and procedure regarding concentrated securities purchases and margin use” related to solicited investments in individual Puerto Rico bonds and Puerto Rico close-end funds.

According to Steven D, Toskes, Esq., of Klayman & Toskes, P.A., “the findings in the FINRA action against Santander Securities released today is significant for investor claims of broker misconduct related to solicited investments in individual Puerto Rico Bonds, Puerto Rico closed-end funds and the use of margin loans which led to catastrophic losses.” Mr. Toskes continued, “Our investigations resulted in similar findings to those detailed in the FINRA AWC against Santander Securities that resulted in $6.4 million in fines and restitution for misrepresentations about risk, concentration in Puerto Rico Bonds and the use of margin and bank loans.”

The securities arbitration law firms of Klayman & Toskes, P.A. and Carlo Law Offices are dedicated to the rights of Puerto Rico investors. We are experienced, qualified and nationally recognized securities litigation attorneys. We are currently investigating Santander Securities, LLC for FINRA sales practice violations related to concentrated investments in individual Puerto Rico Bonds, Puerto Rico closed-end funds and the use of margin loans. Puerto Rico investors who have experience with or knowledge of Santander Securities sales practices, contact Steven D. Toskes, Esq. at 888-997-9956.

The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Announces Investigation into FINRA Sales Practices Violations Related to Credit Suisse X-Links and Velocity Shares ETNs

By | Alternative Investments, Broker Misconduct, Featured Investigations, FINRA Sales Practice Violations, MArket-Linked Notes, Oil & Gas Investments, Securities Arbitration, Securities Concentration, Structured Securities Products | No Comments

Boca Raton, Florida (BUSINESSWIRE) – October 13, 2015 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A., www.nasd-law.com, announces an investigation into Financial Industry Regulatory Authority (FINRA) sales practice violations by major Wall Street brokerage firms, including Credit Suisse Securities USA (“Credit Suisse”), related to Credit Suisse X-Links and Velocity Shares Exchanged Traded Notes (ETNs). Credit Suisse X-Links and Velocity Shares ETNs are issued by affiliated banks, Credit Suisse A.G and Credit Suisse Group A.G., ADR (NYSE:CS). In some instance, Credit Suisse X-Links and Velocity Shares performance is linked to oil prices, energy-related master limited partnerships and commodity indexes. Credit Suisse manages its proprietary X-Links and Velocity Shares ETNs, commonly known as structured securities products, to generate greater returns through the use of embedded derivatives designed to track the performance of a volatile security, index, commodity or currency, many times without any principal protections.

FINRA sales practice rules require a fair and balanced representation to investors that Credit Suisse X-Links and Velocity Shares ETNs are more complex and risky than a simple “interest rate” credit when based on a volatile index or commodity. Credit Suisse underwrites, manages and markets billions of dollars in Credit Suisse X-Links and Velocity Shares ETNs including the following:

  • Credit Suisse S&P MLP ETN (NYSE Arca: MLPO)
  • Credit Suisse X-Links Commodity Benchmark ETN (NYSE Arca: CSCB)
  • Credit Suisse X-Links Commodity Rotation ETN (NYSE Arca: CSCR)
  • Credit Suisse X-Links Cushing MLP Infrastructure ETN (NYSE Arca: MLPN)
  • Credit Suisse Velocity Shares 3X Long Crude ETN (NYSE Arca: UWTI)
  • Credit Suisse Velocity Shares 3X Natural Gas ETN (NYSE Arca: VGAZ)

On August 24, 2015, the Securities Exchange Commission (SEC) issued a SEC National Exam Program – Risk Alert Report which reviewed sales practices violations of major Wall Street brokerage firms related to supervision and sales of Structured Securities Products, similar to Credit Suisse X-Links and Velocity Shares ETNs. According to the SEC examination, deficiencies were found in some brokerage firms’ supervisory and sales practices related to the determination of “suitability” and “levels of concentration” in customer accounts.

Our investigation of major Wall Street brokerage firms, including Credit Suisse relates to sales practices related to Credit Suisse X-Links and Velocity Shares ETNs. Brokerage firm violations of FINRA sales practice violations may include misrepresentations and omissions of material facts, conflicts of interest, unsuitable investment advice, securities concentration or the failure to supervise its financial advisors. Our investigation relates to investments in Credit Suisse X-Links and Velocity Shares ETNs designed to track the Price of Oil, MLP Pipeline Indexes, Commodities Baskets, and in some instances are leveraged up to 300%.

About Klayman & Toskes, P.A.

Klayman & Toskes, P.A., an experienced, qualified and nationally recognized securities litigation law firm, is currently investigating FINRA sales practice violations of major Wall Street brokerage firms related to the sale of Credit Suisse X-Links and Velocity Shares ETNs. Investors who have knowledge or experience related to the sales practices of brokerage firms and its financial advisors’ recommended investment in Credit Suisse X-Links and Velocity Shares ETNs, contact Steven D. Toskes, Esq. at 888-997-9956.

The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Announces Investigation into UBS ETRACS ETNs Linked to Declining Energy and Commodity Prices

By | Blog, Featured Investigations, MArket-Linked Notes, Oil & Gas Investments, Securities Arbitration, Securities Concentration | No Comments

Boca Raton, Florida (BUSINESSWIRE) – October 9, 2015 – The Securities Arbitration Law Firms of Klayman & Toskes, P.A., www.nasd-law.com, announces an investigation into UBS Financial Services, Inc. (UBS), a wholly owned subsidiary of UBS Group A.G. (NYSE:UBS), for Financial Industry Regulatory Authority (FINRA) sales practice violations related to UBS Exchange Traded Access Securities (ETRACS) whose performance is linked to declining commodity and energy prices. UBS manages ETRACS Exchange-Traded Notes (ETNs), commonly known as structured securities products, to generate greater returns through the use of embedded derivatives designed to track the performance of a volatile security, index, commodity or currency, many times without any principal protections.

FINRA sales practice rules require a fair and balanced representation to investors that UBS ETRACS ETNs are more complex and risky than a simple “interest rate” credit when based on a volatile index or commodity. UBS underwrites, manages and markets billions of dollars in UBS ETRACS NTNs to its customers, including the following:

  • UBS ETRACS Alerian MLP Index ETN (NYSE Arca: AMU)
  • UBS ETRACS 2X Monthly Leveraged S&P MLP Index ETN (NYSE Arca: MLPV)
  • UBS ETRACS Alerian MLP Infrastructure Index ETN (NYSE Arca: MLPI)
  • UBS ETRACS 2X Monthly Leveraged Long Alerian MLP Infrastructure Index ETN (NYSE Arca: MLPL)
  • UBS ETRACS CMCI Energy Total Return ETN (NYSE Arca: UBN)
  • UBS ETRACS CMCI Total Return ETN (NYSE Arca: UCI)
  • UBS ETRACS Bloomberg Commodity Index Total Return (NYSE Arca: DJCI)

On August 24, 2015, the Securities Exchange Commission (SEC) issued a National Exam Program – Risk Alert Report which reviewed sales practices violations of major Wall Street brokerage firms related to the supervision and sales of Structured Securities Products, similar to UBS’ proprietary ETRACS ETNs. According to the SEC examination, deficiencies were found in some brokerage firms’ supervisory and sales practices related to the determination of “suitability” and “levels of concentration” in customer accounts.

Our investigation relates to UBS’ sales practices related to its proprietary ETRACS ETNs. UBS’ violations of FINRA sales practice violations may include misrepresentations and omissions of material facts, conflicts of interest, unsuitable investment advice, securities concentration or the failure to supervise its financial advisors. Our investigation relates to investments in UBS ETRACS ETNs designed to track the Price of Oil, MLP Pipelines, Indexes, Commodities Baskets, and in some instances leveraged up to 200%.

About Klayman & Toskes, P.A.

Klayman & Toskes, P.A., an experienced, qualified and nationally recognized securities litigation law firm, is currently investigating FINRA sales practice violations of UBS related to the sale of its proprietary UBS ETRACS ETNs. Investors who have knowledge or experience related to the sales practices of UBS and its financial advisors’ recommended investment in UBS ETRACS ETNs, contact Steven D. Toskes, Esq. at 888-997-9956.

The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Investigates Claims of Customer Losses from Concentrated UPS Stock Positions Managed in Merrill Lynch’s Rampart Options Management Service (ROMS) Program

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Boca Raton, Florida (GLOBE NEWSWIRE) September 18, 2015 — The securities arbitration law firm of Klayman & Toskes, P.A. (“K&T”), www.nasd-law.com, announced today that it is investigating Financial Industry Regulatory Authority (FINRA) violations for Merrill Lynch customers with concentrated positions in United Parcel Service (“UPS”) (NYSE: UPS) stock managed in Merrill Lynch’s Rampart Options Management Service (“ROMS”) program. Merrill Lynch offers the ROMS program on a discretionary basis exclusively to high-net-worth clients holding stock positions exceeding $1 million through Rampart Investment Management Company (RIMCO), an independent money manager located in Boston, Massachusetts. According to Merrill Lynch, “The ROMS service can enhance the income potential of a concentrated stock position by leveraging a combination of modeling programs, experience and professional options management. Investors can likely increase cash flow on their stock by 2% to 6% annualized, with the potential for more depending on the stock’s individual characteristics and the client’s risk/return profile.”

According to K&T, the investigation encompasses Merrill Lynch sales practices for customers who acquired UPS stock through through UPS’ Managers Incentive Program or as an UPS employee, and were advised by Merrill Lynch to manage their concentrated UPS stock position through Merrill Lynch’s ROMS program. According to securities attorney, Steven D. Toskes, “Merrill Lynch must supervise financial advisor investment recommendations made to customers with concentrated stock positions, especially brokerage accounts managed on a discretionary basis” Mr. Toskes explains, “The ROMS program was unsuitable investment advice for UPS investors with low cost basis stock who did not want to have UPS stock ‘called away’ and trigger large capital gains tax. During the second half of 2013, UPS stock price gains resulted in substantial losses when share prices rose above call option strike prices selected by the ROMS program. A failure to recommend suitable option strategies for concentrated stock positions may be a cause of action available to Merrill Lynch customers in an individual securities arbitration claim filed with FINRA.” Securities concentration in UPS stock may result from investors’ desire to avoid taxes from the sale of low cost basis stock. No matter what the reason for maintaining a concentrated stock position, Merrill Lynch and its financial advisors must recommend suitable options strategies based on customer personal financial needs.

About Klayman & Toskes, P.A.

K&T an experienced, qualified and nationally recognized securities litigation law firm is currently investigating FINRA sales practice violations of Merrill Lynch related to customers with concentrated positions in UPS stock managed by Rampart Options Management Services. If you have knowledge or experience related to the sales practices of Merrill Lynch and its financial advisors recommendation of covered call option strategies for managed by Rampart Options Management Services, contact Steven D. Toskes, Esq. at 888-997-9956 or visit us on the web at www.nasd-law.com.

Recent IBM Class Action Lawsuit Provides Investors Loss Recovery Options

By | Blog, Class Action vs Arbitration, Featured Investigations, FINRA Sales Practice Violations, News, Securities Arbitration, Securities Concentration | No Comments

Recently, an IBM Class Action Lawsuit (Case No. 15-CV-01513) was filed in the United States District Court for the Southern District of New York for the class period from April 17, 2014 to October 17, 2014. These developments requires investors who acquired IBM stock (NYSE:IBM) through employment, inheritance or as a personal investment to consider their legal options. If investors maintained concentrated positions in IBM stock with full-service brokerage firms they should to consider what legal options are available to recover their investment losses. Investors may recover investment losses through a Financial Industry Regulatory Authority (FINRA) securities arbitration claim for damages. FINRA arbitration claims allege damages based on your personal circumstances and case facts, whereas class action members alleged damages suffered by the class as a whole, not individually. FINRA arbitration claims can cover longer periods of time than the class action period price declines and also include losses in securities not covered by the class action lawsuit but are the result of FINRA rule violations.
For many investors, IBM stock represented a long term holding acquired through investment, inheritance or as an IBM pension plan participant. According to Klayman & Toskes, P.A. co-founder Steven D. Toskes, “Investors in IBM stock were not educated about the risks associated with maintaining a concentrated stock position. Mr. Toskes explains, “Brokerage firms are required to supervise the activities in brokerage accounts, losses may be attributed to the failure to adequately supervise the stockbroker and the brokerage account. Recommendations which result in unsuitable investment advice and/or failure to recommend appropriate risk management strategies for unprotected concentrated stock positions are both causes of action that may be available to investors against their full-service brokerage firm in an individual securities arbitration claim filed with FINRA.”
Current and former IBM employees who have sustained investment losses 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 investment losses. K&T, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation.
About Klayman & Toskes
Klayman & Toskes, a leading securities and litigation law firm, practices exclusively in the field of securities arbitration and litigation, on behalf of retail and institutional investors. The firm represents investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.

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

By | Blog, FINRA Sales Practice Violations, Securities Arbitration, Securities Concentration, Uncategorized | No Comments

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 (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.

By failing to protect the concentrated position and/or recommend risk management strategies, the claimants received collateral calls or margin calls which triggered the sale of UPS stock. These sales occurred with UPS at substantially low prices and caused the claimants to incur large capital gains taxes as the UPS stock had a low cost basis from the MIP. While these claimants lost their shares, UPS rebounded and now trades at about $100 per share.

The sole purpose of this release is to investigate, on behalf of our clients, the sales practices of full-service brokerage firms in connection with the handling of concentrated, leveraged stock portfolios for UPS employees. Current and former UPS employees who held accounts with full-service brokerage firms 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.

UBS-Lehman Class Action Opt-Out

By | Class Action vs Arbitration, FINRA Sales Practice Violations, News, Securities Arbitration, Securities Concentration, Uncategorized | No Comments

Deadline To Opt-Out of the UBS-Lehman Notes Class Action is November 19, 2013

UBS Financial Services customers who are class members in the securities class action lawsuit filed against UBS, Case No. 09-md-02017, which involves losses sustained in certain Lehman Principal Protection Notes, Auto-Callable Notes, and Return Optimization Notes (collectively referred to as “Lehman Notes”), should be aware that that the U.S. District Court recently approved an Order Concerning Proposed Settlement with UBS. The Order provides that a request for exclusion from the settlement class must be postmarked no later than November 19, 2013, which is 21 calendar days prior to the Court ordered Settlement Hearing of December 10, 2013. UBS customers who are eligible to participate in the class action settlement should consider whether they should participate in the class action or file an individual securities arbitration claim in the arbitration forum established by the Financial Industry Regulatory Authority (“FINRA”).

Presently, Klayman & Toskes represents investors who purchased Lehman Notes from UBS in securities arbitration claims before FINRA. These investors chose to pursue their claims individually rather than participate in the class action because they suffered large losses. K&T reminds investors of the benefits of filing an individual securities arbitration claim, as opposed to participating in a class action lawsuit.  By participating in a class action lawsuit, an investor may only recover a nominal amount.  However, if one has experienced significant losses in excess of $100,000 in Lehman Notes, it may be more beneficial for them to file an individual securities arbitration claim.  In 2003, Klayman & Toskes conducted a detailed study of securities arbitration versus class action.  The study concluded that investors who file a securities arbitration claim traditionally obtain an overall higher rate of recovery as opposed to participating in a class action lawsuit.  To view the full results of the comparison, click here.

Investors who purchased Lehman Notes from UBS and sustained significant losses in excess of $100,000 can contact Klayman & Toskes, toll-free, at 888-997-9956, to explore their legal rights and options. For more information on Lehman Note claims, visit our Lehman Note website at www.lehmanprincipalprotectionnotes.com.

Do you have a question or need more information? Get in touch with us