If you have lost money in the stock market due to fraud, misrepresentation, negligence, or for other reasons, we can help you. We have successfully recovered over $250 million in FINRA securities arbitrations.*
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Since 2000, KlaymanToskes has pioneered the representation of High Net Worth (“HNW”) and Ultra-HNW clients who sustained investment losses as a result of holding concentrated positions in a single security or sector, in a full-service brokerage account. The claims, filed in the Financial Industry Regulatory Authority (“FINRA”) Arbitration Department f/k/a NASD and NYSE, focus on the mismanagement of the clients’ portfolios given the fact that there were risk management strategies that would have protected the value of the concentrated portfolio. Such risk management strategies include stop loss and limit orders, protective puts and collars. Stop loss orders, limit orders and protective puts provide an account with downside protection and an exit strategy should the stock decline in value. A hedge strategy, known as a “zero cost” collar, would have created a range of value that the portfolio would have maintained irrespective of the fluctuation and direction of the underlining stock price. The failure to use risk management strategies as well as the failure to “hedge” the value of a concentrated portfolio directly exposes an investor’s concentrated position to the fluctuations in the volatile securities markets.
Whether the broker recommended that the client purchase a concentrated position, or the concentrated position was transferred into the account, the brokerage firm had a duty to make suitable recommendations to diversify away the risk. If your full-service brokerage firm failed to take the appropriate steps necessary to either 1) sell and diversify or 2) implement a risk management strategy to preserve the value of your concentrated stock position, then a securities arbitration claim against your brokerage firm represents your best method to recover some of your losses.
KlaymanToskes urges retail and institutional investors who have sustained losses as a result of holding concentrated positions in a single security or sector to contact KlaymanToskes to explore their legal rights and options.