Notice to Merrill Lynch Clients with Rampart Options Management Services Program: Klayman & Toskes, P.A. Continues to Pursue $1,000,000 FINRA Arbitration Claim on Behalf of UPS Employee for Mismanagement of Concentrated Stock Position

New York, June 28, 2016 (GLOBE NEWSWIRE) – The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.nasd-law.com, announced today that it is continuing to pursue a $1,000,000 FINRA arbitration claim against Merrill Lynch [FINRA Case No. 16-01593] on behalf of UPS (NYSE:UPS) employee for losses sustained from an unsuitable recommendation to invest in the Rampart Options Management Services Program (“Rampart”).

The Claimant worked for over 23 years with UPS and accumulated shares of the company through UPS’ Employee Stock Purchase Plan and Managers Incentive Program, according to the Claim.  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, “Merrill Lynch’s recommendation to utilize Rampart’s strategy was unsuitable investment advice.  Our client is a UPS investor with low cost basis stock who did not want to have their UPS position ‘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.

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