The Securities Arbitration Law Firm of Klayman & Toskes Files $750,000 Claim Against Wells Fargo Advisors on Behalf of a UPS Employee as it Continues to Investigate Claims on Behalf of Current and Former UPS Employees -- UPS

NEW YORK, Oct. 4, 2013 (GLOBE NEWSWIRE) -- The Securities Arbitration Law Firm of Klayman & Toskes ("K&T"), www.nasd-law.com, announced today that it filed a $750,000 claim against Wells Fargo Advisors on behalf of a UPS (NYSE:UPS) employee for losses sustained as a result of maintaining a concentrated, leveraged position in UPS stock. The suit was filed with FINRA's arbitration department.

According to the Claim, the Claimant worked for over 33 years with UPS and accumulated shares of the company through UPS' Employee Stock Purchase Plan and Managers Incentive Program. To facilitate purchasing the UPS stock, the Claimant opened a Hypothecation Loan ("hypo loan") whereby the UPS stock served as collateral. At one point, the Claimant moved his hypo loan to Wells Fargo Bank and a Note and Security Agreement was executed with the bank whereby the Claimant used his UPS stock as collateral against the loan. While Wells Fargo Bank loaned the Claimant money using his UPS stock as collateral, Wells Fargo Advisors failed to recommend a collar and/or protective put option as a risk management strategy to protect the Claimant's concentrated position in UPS stock. A collar and/or protective put option would have prevented a collateral call on the loan when the UPS stock substantially declined below the loan-to-value ratio. By failing to protect the concentrated position and/or recommend risk management strategies, the Claimant received a collateral call which triggered the sale of his UPS stock. This case is about the failure of Wells Fargo to collar and/or protect the Claimant's UPS stock which represented his life savings.

The sole purpose of this release is to investigate, on behalf of our clients, the sales practices of Wells Fargo in connection with the handling of concentrated, leveraged stock portfolios for UPS employees. Current and former UPS employees who held accounts with the brokerage firms Wells Fargo Advisors or Wachovia Securities and have information relating to the manner in which the firms handled their concentrated, leveraged portfolios, are encouraged to 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 www.nasd-law.com.

Source:Klayman & Toskes P.A.