NEW YORK, Aug. 12, 2022 (GLOBE NEWSWIRE) -- National investment fraud lawyers KlaymanToskes (“KT”) is investigating FINRA arbitration claims on behalf of current and former RMO (NYSE: RMO) employees and investors who sustained losses from holding concentrated or margined positions in RMO and other EV stocks through full-service brokerage firms.
On December 24, 2020, RMO reached an all-time high of $34.00. Today, RMO closed at $0.77 which represents a 98% decline from its high. As a result, RMO shareholders who held a concentrated position incurred substantial losses. Investors who used their RMO stock as collateral for margin loans likely received a margin call and a substantial portion of their stock was liquidated.
KT has pioneered the representation of investors who sustained losses as a result of holding concentrated positions in company stock, like Romeo Power and other EV industry stocks, in full-service brokerage accounts. The clients we have represented include founders of public companies and employees across many industries who received company stock as compensation. Many full-service brokerage firms have mismanaged clients’ concentrated portfolios through the failure to use risk management strategies as well as the failure to “hedge,” and misrepresented the risks, including a potential loss of shares.
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.”
KlaymanToskes encourages investors with concentrated and/or margined positions 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/contact/
Contact
KlaymanToskes
Lawrence L. Klayman, Esq.
1-888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com
