KlaymanToskes, www.klaymantoskes.com, announced today that it is investigating the damages sustained during the Coronavirus (“COVID-19”) pandemic by employees and investors who held large positions in Whiting Petroleum (NYSE:WLL) stock at full-service brokerage firms. Investment portfolios holding large positions can carry significant downside risks. The investigation focuses on full-service brokerage firms’ negligence and mismanagement of large positions that resulted in employees and investors suffering substantial losses.
Full-service brokerage firms whose customers hold large stock positions have a duty to ensure that their customers understand the risks. Firms are also required to disclose and recommend the availability of risk management strategies which can be used to protect the value of large positions and the risks associated with holding a stock position in a single stock or single sector. Since trading as high as 27.28 per share in May 2019, Whiting Petroleum is currently trading around 1.21 per share. To make matters worse, Whiting Petroleum filed for bankruptcy in early April.
If you made self-directed trades in your investment account with E-Trade, TD Ameritrade, Charles Schwab, Fidelity, or Interactive Brokers, or another self-trading platform that was not being managed by a registered investment advisor, this investigation does not apply to you.
The sole purpose of this release is to investigate whether strategies deployed by investment firms were suitable for Whiting Petroleum employees and investors with large stock positions or were invested primarily in a single stock or single sector. Whiting Petroleum employees and investors who held accounts at full-service brokerage firms, and have information relating to the manner in which the firm handled their accounts are encouraged to contact Lawrence L. Klayman, Esq., at (561) 542-5131, and download our Special Investor Report.