National investment fraud lawyers KlaymanToskes is investigating (“Peloton Investment Loss Investigation”) individual securities arbitration claims on behalf of investors who sustained losses in holding concentrated positions in Peloton (NASDAQ: PTON) through full-service brokerage firms.
Peloton’s stock price was around $107.00 on March 16, 2021, but recent prices hover between $21.00 and $23.00, which is nearly an 80% drop. Peloton’s stock plunge coincides with several major events impacting the at-home fitness company this past year, including the reported significant reduction in consumer demand for its products, a temporary suspension of production for some of its equipment, the recall on its line of treadmills, and government regulator probes over injuries resulting from its exercise machines.
Full-service brokerage firms whose customers hold large concentrated stock positions in Peloton have a duty to ensure that their customers understand the risks associated with concentration and to disclose and recommend the availability of risk management strategies, which can be used to protect the value of the concentrated portfolio.
For instance, according to the Financial Industry Regulatory Authority (FINRA) , brokerage firms and financial advisors are required to disclose the risks associated with a particular investment or investment strategy. Any investment recommendation should consider the total composition of securities held in an investment portfolio. Failure to recommend a strategy to manage the risks associated with securities concentration can be considered financial advisor negligence for providing unsuitable investment advice or the failure to recommend risk management strategies for a concentrated position. An investor might be unwilling or unable to establish a diversified portfolio which results in exposure to the risks of securities concentration. Investor portfolios may be concentrated as the result of one or more of the following reasons:
In furtherance of our Peloton investigation, KlaymanToskes encourages investors who lost in excess of $100,000, and those who have information relating to the handling of their accounts, to contact securities attorney Lawrence L. Klayman, Esq. at 888-899-2320, and download our Special Investor Report.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. KlaymanToskes has recovered more than $230 million for investors in FINRA arbitrations. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.