National investment loss lawyers KlaymanToskes issues notice to McDonald’s shareholders, including current and former employees, franchisees, executives, suppliers and others, who held large positions in Mcdonalds (NYSE: MCD), and suffered investment losses from an unsuitable recommendation to employ a covered call writing strategy by their brokerage firm or broker/advisor.
For many years, KlaymanToskes has advocated for investors holding company stock, only to see it called away by risky covered call writing strategies used by their brokers/financial advisors. We have made significant recoveries on behalf of holders of concentrated stock positions. Accordingly, KlaymanToskes has launched an investigation on behalf of McDonald’s investors.
The firm is investigating Wells Fargo Advisors and Wells Fargo Clearing Services following a Financial Industry Regulatory Authority (“FINRA”) arbitration award ordering the firm to pay over $475,000 for a failed Mcdonalds (NYSE: MCD) covered call options trading strategy.
The customer is a former Mcdonald’s franchisee who is now retired. At one point the customer operated five Mcdonald’s franchises, and accumulated 3,357 shares of McDonald’s common stock over his 43-year career at the company. According to the customer, his McDonald’s shares had accumulated large capital gains and were to be held until his death, in order to be passed on to his son. Instead, they were called away.
Current and former large shareholders, Mcdonald’s employees, executives, franchisees and others, who held accounts at Wells Fargo or any other brokerage firm, are encouraged to contact attorney Lawrence L. Klayman at (888) 997-9956 or lklayman@klaymantoskes.com for a free consultation. We do not collect attorneys fees unless we are able to obtain a financial recovery for you.
The complaint, originally filed in April 2022, stated that the customer’s McDonald’s shares held significant sentimental value to both him and his family, as they represented his extensive career at McDonald’s. The customer intended for his son to inherit his shares upon his passing. Instead, the customer lost his shares and incurred large capital gains.
According to the award, Wells Fargo, along with the customer’s broker/investment advisor Frederick Robert Hughes sold calls on his customer’s McDonald’s common stock shares which deprived the customer of receiving gains on his investments. A FINRA arbitration panel found Wells Fargo and Hughes jointly and severally liable.
FINRA ordered Wells Fargo and Hughs to pay the customer $450,000 in compensatory damages along with $25,000 in costs, and $625 for the customer’s filing fees. Causes of action cited by the complaint included a breach of fiduciary duty; breach of contract; negligence; fraud; constructive fraud; conversion; and respondeat superior.
As stated in the award document, Wells Fargo and broker/advisor Frederick Robert Hughes sought expungement of all references to the arbitration from his license and BrokerCheck records. However, FINRA denied this request.
According to securities attorney Lawrence L. Klayman, “Current and former McDonald’s employees who were forced to sell their stock, triggering a significant tax liability from low cost basis stock and/or paying a substantial amount of money to buy back their MCD stock from an unsuitable covered call options strategy, may be entitled to a financial recovery.”
McDonald’s shareholders who sustained significant losses as a result of unsuitable trading at the hands of their brokerage firm/financial advisor are encouraged to contact attorney Lawrence L. Klayman at (888) 997-9956 or by email at lklayman@klaymantoskes.com for a free consultation. We do not collect attorneys fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com