KlaymanToskes (“KT”), www.klaymantoskes.com, continues to investigate FINRA arbitration claims for current and former UPS (NYSE: UPS) employees with accounts at Merrill Lynch, for losses sustained from unsuitable covered call writing strategies for concentrated UPS stock positions.
According to multiple FINRA claims, Merrill Lynch employed an unsuitable covered call writing strategy. After hard-working UPS employees accumulated thousands of UPS shares through UPS’s Employee Stock Purchase Program and the Manager Incentive Program, they were solicited to invest with Merrill Lynch. Merrill Lynch recommended a call writing strategy, to earn stable income. The strike prices that the call options were sold at were far too low given market conditions. The strategy was improperly implemented, and it led to UPS employees losing thousands of shares or significant amounts of money buying back the shares. The UPS employees did not want to lose shares, which they were assured they would not. More importantly, the shares paid out much needed quarterly dividends, which are relied upon in retirement. Further, the sale of such large positions typically ended in significant tax liability to investors.
The sole purpose of this release is to investigate the sales practices of Merrill Lynch for FINRA sales practice violations including: unsuitable recommendations, misrepresentation and omissions of material facts, and failure to supervise. Current and former UPS employees who held accounts at Merrill Lynch, and have information relating to the manner in which the firm handled their concentrated portfolios, are encouraged to contact Lawrence L. Klayman, Esq., at (561) 542-5131, and download our Special Investor Report.