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New York, June 8, 2016 (GLOBE NEWSWIRE) – The Securities Arbitration Law Firm of KlaymanToskes, www.klaymantoskes.com, announced today that it filed a claim against Merrill Lynch on behalf of a UPS (NYSE:UPS) employee for losses sustained from an unsuitable covered call writing strategy for a concentrated UPS stock position. The suit was filed with FINRA’s Arbitration Department, and seeks damages of $1,000,000.
According to the Claim, the Claimant worked over 33 years with UPS and accumulated shares of the company through UPS’ Employee Stock Purchase Plan and Managers Incentive Program. Merrill Lynch and its financial advisor facilitated the unsuitable investment strategy of selling covered call options on the UPS stock to produce income, despite Claimant’s investment objective and desire to hold onto his UPS stock. Merrill Lynch sold 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. The consequence of Merrill Lynch not buying back the call options resulted in Claimant losing over 33,000 shares of his UPS stock, which took his entire career to accumulate.
We are currently investigating whether the covered call strategies deployed by Merrill Lynch and other investment firms were suitable for investors with concentrated stock positions which were acquired through Managers Incentive Programs or Employee Stock Purchase Programs. Current and former UPS employees who held accounts with Merrill Lynch, or other full-service brokerage firms, and have information relating to the manner in which the firm handled their concentrated, leveraged portfolios, are encouraged to contact Steven D. Toskes, Esq. or Raymond Gentile, Esq. of Klayman & Toskes, P.A., at 888-997-9956, or visit our firm’s website at www.klaymantoskes.com.