NEW YORK, April 21, 2022 (GLOBE NEWSWIRE) -- National investment fraud lawyers KlaymanToskes is investigating individual securities arbitration claims on behalf of current and former Netflix (NASDAQ: NFLX) employees and investors who sustained losses from holding concentrated or margined positions in Netflix through full-service brokerage firms.
In June 2020, Netflix’s stock price was around $418.00. From June 2020 to late 2021, numerous brokerage firms upgraded or maintained buy recommendations for Netflix while its stock rose as high as $675.00 in November 2021. Following this rise, Netflix’s price dropped to around $226.00 as of April 20, 2022, which is nearly a 67% drop. As a result, many Netflix shareholders who used their Netflix stock as collateral for margin loans likely received a margin call and a substantial portion of their stock was liquidated.
According to securities attorney Lawrence L. Klayman, Esq., “Brokerage firms whose customers hold large, concentrated stock positions have a duty to ensure that their customers understand the risks associated with concentration and disclose and recommend the availability of risk management strategies, which can be used to protect the value of the concentrated portfolio. A firm’s failure to recommend a strategy to manage risks associated with securities concentration or margin use is considered negligence, and is a basis for liability in a FINRA arbitration claim.”
The sole purpose of this release is to investigate the sales practices of full-service brokerage firms and their financial advisors in connection with Netflix. In furtherance of our investigation, KlaymanToskes encourages investors who purchased Netflix between June 2020 and January 2022 and realized losses in excess of $100,000, as well as those who have information relating to the handling of their accounts, to contact securities attorney Lawrence L. Klayman, Esq. at 1-888-997-9956, and download our Special Investor Report.
About KlaymanToskes
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. The firm has recovered more than $230 million for investors in FINRA arbitrations. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
Destination: https://klaymantoskes.com/netflix-stock-losses-investigation/
Contact
KlaymanToskes
Lawrence L. Klayman, Esq.
1-888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com
