NEW YORK, March 13, 2017 (GLOBE NEWSWIRE) — The securities arbitration law firm of Klayman & Toskes, P.A. (“K&T”), www.nasd-law.com, has filed a $1,000,000 FINRA arbitration claim [FINRA Case No. 17-00599] on behalf of retired United Parcel Service (“UPS”) (NYSE: UPS) employee for losses suffered as a result of Merrill Lynch’s unsuitable recommendation to invest in Rampart Strategy.
According to K&T, the investigation focuses on Merrill Lynch’s sales practices for customers who acquired UPS stock through UPS’ Employee Stock Purchase Plan or Managers Incentive Program and were advised by Merrill Lynch to implement a covered call strategy on their concentrated UPS stock position through Merrill Lynch’s Rampart Strategy.
Securities attorney Steven D. Toskes from K&T explains, “The covered call strategy implemented by Merrill Lynch through Rampart was unsuitable since the strike price of the call option was either too close to the current share price of UPS or below the then current price. Mr. Toskes continues, “The close proximity of the share price and strike price of UPS virtually ensured that the stock would get called away or it would be very expensive to buy back the option. Our client accumulated low cost basis stock during the 29 years they worked for UPS and did not want to have their stock ‘called away’ and trigger a large capital gains tax.”
K&T continues to represent UPS employees who invested in the Rampart Strategy against Merrill Lynch for FINRA sales practice violations, including unsuitable recommendations, misrepresentations and omissions of material facts and failure to supervise. Investors who have information about the sales practices of brokerage firms and their financial advisors are encouraged to contact Lawrence L. Klayman, Esq. or Steven D. Toskes, Esq. of Klayman & Toskes at (888) 997-9956, or visit our website at www.nasd-law.com.