updated 1/30/2011 5:45:15 PM ET 2011-01-30T22:45:15

NEW YORK, Jan. 29, 2011 (GLOBE NEWSWIRE) -- The Securities Arbitration Law Firm of Klayman & Toskes ("K&T"), www.nasd-law.com , announced today that it filed a securities arbitration claim against Merrill Lynch, now a part of Bank of America (NYSE:BAC), on behalf of a retired UPS (NYSE:UPS) employee for losses sustained as a result of maintaining a concentrated, leveraged position in UPS stock. The claim seeks damages of $750,000. The suit was filed with the Financial Industry Regulatory Authority's ("FINRA") Office of Dispute Resolution. 

The Claimant in this case was a hard working, loyal employee of UPS for nearly 36 years. During that time, he accumulated shares of the company through UPS' Employee Stock Purchase Plan and Managers Incentive Program, which represented virtually his entire life savings. In addition to acquiring company stock, the Claimant opened a "hypo loan" of over $1 million whereby the UPS stock served as collateral.  The UPS stock was held at Merrill Lynch which offered the Claimant the line of credit.  Despite having a duty to do so, Merrill Lynch failed to protect the concentrated position by using risk management strategies, like a collar, put options, and/or stop loss orders. Consequently, the Claimant received margin calls which triggered a sell-off of the UPS stock.

The effects of margin on a concentrated position substantially increased the risk to the Claimant's account, led to the liquidation of UPS stock, and precluded the Claimant from recovering his losses through a potential rebound in the price of the stock.  Without the margin loan, the UPS stock would not have been liquidated to meet the margin call, thereby providing it with an opportunity to recover as the price of UPS stock rebounded since 2009. 

Retail and institutional investors, including current and former UPS employees, who have sustained investment losses 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 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 $100,000 or more, 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 http://www.nasd-law.com.

CONTACT: Klayman & Toskes P.A.
         888-997-9956

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