ATTENTION EXERCISE AND HOLD STRATEGY INVESTORS WITH EMPLOYER COMPANY STOCK: KlaymanToskes Commences Investigation into Full-service Brokerage Firms for Mismanagement of Concentrated, Leveraged Positions in Employer Company Stock

NEW YORK, July 02, 2020 (GLOBE NEWSWIRE) -- National investment fraud law firm, KlaymanToskes (“KT”), commences an investigation into full-service brokerage firms for the mismanagement of concentrated, company stock positions accumulated through employer sponsored plans. The investigation focuses on whether full-service brokerage firm recommendations for an “exercise and hold” strategy represents unsuitable investment advice and a failure to supervise the management of concentrated, leveraged positions in employer company stock.

Investment portfolios holding large concentrated stock positions carry significant downside risks, especially when leveraged by a margin loan. Full-service brokerage firms whose customers hold large concentrated stock positions 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, such as a “zero cost” collar, which can be used to protect the value of a concentrated, leveraged portfolio. The failure to use risk management strategies as well as the failure to “hedge” the value of a concentrated portfolio directly exposes an investor’s concentrated, leveraged position to fluctuations in the volatile securities markets.

The sole purpose of this release is to investigate whether strategies deployed by full-service brokerage firms were suitable for investors with concentrated, leveraged stock positions in employer company stock. Investors who held concentrated, leveraged positions of employee stock in accounts at full-service brokerage firms, and have information relating to the manner in which the firm handled their portfolios are encouraged to contact Lawrence L. Klayman, Esq., at (561) 542-5131, and download our Special Investor Report.

About KlaymanToskes

KT 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. KT has office locations in California, Florida, New York, and Puerto Rico.



Lawrence L. Klayman, Esq.,
(561) 542-5131