The Securities Law Firm of Klayman & Toskes Continues to Pursue Claims on Behalf of Current and Former UPS Employees Who Held Concentrated Positions in UPS Stock on Margin/Hypo Loans -- UPS

/ Source: GlobeNewswire

NEW YORK, Dec. 18, 2010 (GLOBE NEWSWIRE) -- The Securities Law Firm of Klayman & Toskes ("K&T"), , announced today that it is continuing to pursue claims on behalf of current and former UPS (NYSE:UPS) employees who held concentrated, leveraged positions in UPS stock. Moreover, K&T continues to be retained by additional current and former UPS employees who sustained losses in UPS stock.

Since filing claims on behalf of UPS shareholders, K&T has discovered that several, major full service brokerage firms left leveraged, concentrated positions in UPS stock exposed, with no protection of the downside risk associated with this allocation. According to one claim filed against Merrill Lynch by K&T, over 90% of the Claimant's account consisted of UPS stock. 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. The Claimant also had a margin loan against the concentrated portfolio exceeding $1.7 million.  In March 2009, the UPS stock dropped to $38 which triggered margin calls. Consequently, 34,000 shares of UPS stock were liquidated to meet the calls. 

The effects of margin on a concentrated position substantially increased the risk to the Claimant's account, led to the forced 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. 

Current and former UPS employees who 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 of Klayman & Toskes, at 888-997-9956 or visit us on the web at

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