NEW YORK, June 10, 2016 (GLOBE NEWSWIRE) -- The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.nasd-law.com, announced today that it has filed a claim against Merrill Lynch on behalf of a UPS (NYSE:UPS) employee for losses sustained from an unsuitable recommendation to invest in the Rampart Options Management Services Program (“Rampart”). The suit was filed with FINRA’s Arbitration Department and is seeking damages of $500,000.
According to the Claim, the Claimant worked over 23 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 recommended Rampart to facilitate the unsuitable investment strategy of selling covered call options on the UPS stock to produce income. Securities attorney Steven D. Toskes explains, "Rampart’s covered call strategy was unsuitable investment advice for a UPS investor with low cost basis stock who did not want to have UPS stock 'called away' and trigger a large capital gains tax.
Merrill Lynch advised the sale of 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. Claimant lost over 3,800 shares of his UPS stock as a result of Merrill Lynch’s failure to recommend suitable options strategies for concentrated stock positions.
If you are a current or former UPS employee with a Merrill Lynch account that used Rampart’s services, and wish to discuss this announcement or have relevant information relating to the manner in which the firm handled concentrated portfolios, please contact Lawrence Klayman, Esq. or Steven D. Toskes, Esq. of Klayman & Toskes, P.A., in furtherance of our investigation at 888-997-9956, or visit our firm’s website at www.nasd-law.com.
About Klayman & Toskes, P.A.
K&T 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. The firm represents high net-worth, ultra-high-net-worth, and institutional investors, such as non-profit organizations, unions, public and multi-employer pension funds. K&T has office locations in California, Florida, New York and Puerto Rico.