Notice to Merrill Lynch Customers: The Securities Arbitration Law Firm of Klayman & Toskes Investigates Claims on Behalf of UPS Employees Who Held Concentrated Leveraged Positions in UPS Stock

Sat Mar 16, 2013 11:11am EDT

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NEW YORK--(Business Wire)--
The Securities Arbitration Law Firm of Klayman & Toskes ("K&T") announced today
that it is investigating claims against Merrill Lynch on behalf of United Parcel
Service ("UPS") (NYSE: UPS) employees who sustained losses as a result of
maintaining a concentrated, leveraged position in UPS stock. Many UPS employees
who obtained company stock as a form of compensation through the Managers
Incentive Program, and later transferred it to a full-service brokerage firm
like Merrill Lynch, used the stock as collateral for a "hypo loan." A hypo loan
is obtained by pledging securities or other assets as collateral to secure a
loan. In this case, the UPS stock served as collateral for the loan.
Unfortunately, many UPS employees were never advised of the risks associated
with maintaining a hypo loan, including the risk of a margin call. When the
price of UPS stock declined from October 2008 through April 2009, many UPS
employees had their stock liquidated thereby decimating their investment

Additionally, in many accounts, the UPS stock represented a concentrated
position. However, many UPS employees were unaware of the risks associated with
owning a concentrated account. In some cases, full-service brokerage firms
failed to explain how the use of risk management strategies, like a zero-cost
collar, protective put options, stop loss orders and/or an exchange fund, could
have protected the concentrated UPS position. 

The effects of margin on a concentrated stock position substantially increase
the risk to the account. Once the account receives a margin call as a result of
the decline in share price of the UPS stock, a forced liquidation of the stock
can occur, which precludes the investor from recovering their losses through a
potential rebound in the price of UPS stock. In many cases, had the investor not
been on margin, the UPS stock would not have been liquidated to meet a margin
call, thereby providing it with an opportunity to recover given that the price
of UPS stock came back in value since 2009. 

Current and former UPS employees who held accounts at Merrill Lynch and
sustained investment losses in UPS stock can contact K&T to explore their legal
rights and options. The attorneys at K&T are dedicated to pursuing claims on
behalf of investors who have suffered substantial investment losses. K&T, an
experienced, qualified and nationally recognized securities litigation law firm,
practices exclusively in the field of securities arbitration and litigation. It
continues its representation of investors throughout the world in securities
arbitration and litigation matters against major Wall Street brokerage firms. 

If you wish to discuss this announcement or have investment losses of $250,000
or more in UPS stock, please contact Steven D. Toskes, Esquire or Jahan K.
Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956 or visit us on the
web at Klayman & Toskes.

Klayman & Toskes, P.A.
Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire

Copyright Business Wire 2013

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