KlaymanToskes ("KT"), www.klaymantoskes.com, continues to investigate and pursue FINRA arbitration claims for current and former UPS (NYSE: UPS) employees for losses sustained from unsuitable covered call writing strategies. The investigation focuses on full-service brokerage firms’ sales practices for customers who acquired UPS stock through UPS’s Employee Stock Purchase Plan or Managers Incentive Program and were advised to implement a covered call strategy on their concentrated UPS stock position.
KT continues to investigate and pursue claims on behalf of current and former UPS employees, who held concentrated positions in UPS stock. UPS employees received their shares at a low cost-basis as a form of compensation, and full-service brokerage firms solicited them to employ a covered-call strategy that promised stable income without losing shares. UPS employees often have no desire to lose the shares that they worked so hard to acquire. UPS employees also wanted to keep their shares because the shares produced consistent dividends, and the shares have a history of appreciation. In many instances the covered call strategy failed, as it was improperly implemented. The strategy placed investors in a precarious position of either losing their shares or having to pay significant sums to buy-back their stock. Further, the sale of such large positions typically ended in significant tax liability to investors.
The sole purpose of this release is to investigate whether the covered call strategies deployed by investment firms were suitable for UPS investors with concentrated stock positions. Current and former UPS employees who held accounts at full-service brokerage firms, and have information relating to the manner in with the firm handled their concentrated portfolios, are encouraged to contact the attorneys of KlaymanToskes at (888) 997-9956, or visit our firm’s website at www.klaymantoskes.com.
KT is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm represents high net-worth, ultra-high net-worth, and institutional investors, such as non-profit organizations, unions, public pension funds, and multi-employer pension funds. KT has office locations in California, Florida, New York, and Puerto Rico.