National investment fraud lawyers KlaymanToskes is investigating individual securities arbitration claims on behalf of investors who sustained losses in holding concentrated positions in Talkspace, Inc. (NASDAQ: TALK) (“Talkspace Investment Loss Investigation”) through full-service brokerage firms.
Talkspace is a digital behavioral technology healthcare company. Its product connects individual clients with a network of thousands of licensed therapists through the web and a mobile platform.
Talkspace’s opening day stock price was listed at $8.90, but recent prices hover between $1.60 and $1.70 per share, which is 80% below the price shareholders would have received had they redeemed their shares instead of approving a merger with special purpose acquisition company (“SPAC”) Hudson Executive Investment Corporation (“HEIC”) in 2021.
Full-service brokerage firms whose customers hold large concentrated stock positions, especially in companies resulting from SPACs, 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.
According 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:
Securities concentration in stocks might be caused by an employer restriction, tax avoidance, psychological and emotional attachment to the company stock. No matter what the reason for maintaining a concentrated stock position, a brokerage firm and its financial advisors must recommend suitable risk management strategies to protect the value of any concentrated stock position held in a financial brokerage account.
Brokerage firm customers that hold concentrated positions and do not receive when appropriate a recommendation for risk management strategies may be able to recover investment losses through a FINRA arbitration award. In some instances, financial advisors might recommend risk management strategies such as complex hedging strategies to reduce the risk of a concentrated stock position. Unfortunately, the brokerage firm’s failure to supervise financial advisor’s who failed to implement the strategy properly, the brokerage firm may be held accountable for negligence.
KlaymanToskes. can help you determine whether an investment loss is the result of securities concentration and/or failure to recommend risk management strategies to protect concentrated position. If an investor suffers losses as the result of the failure to recommend risk management strategies for securities concentration may be able recover their losses in a FINRA arbitration claim for damages.
In furtherance of our investigation, KlaymanToskes encourages investors who lost in excess of $250,000, and those who have information relating to the handling of their accounts, to contact securities attorney Lawrence L. Klayman, Esq. at (561) 542-5131, and download our Special Report.
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. KlaymanToskes has recovered more than $225 million for investors in FINRA arbitrations. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.