Investor Losses: Merrill Lynch Recommendations for Overconcentrated Investment Recommendations in UPS Stocks
Posted on Friday, June 23rd, 2017 at 4:00 pm
Erez Law is currently investigating Merrill Lynch financial advisors across the country who recommended that United Parcel Service (UPS) employee clients invest in UPS stocks in the company’s Rampart Options Management Services Program.
In June 2017, a former UPS employee reportedly filed a FINRA complaint alleging $500,000 in damages as a result of Merrill Lynch’s unsuitable recommendation to invest in UPS stocks through the company’s employee stock purchase plan or managers incentive program. It is alleged that the Merrill Lynch adviser concentrated the customer’s investment in UPS stocks through Merrill Lynch’s Rampart program.
In March 2017, another former UPS employee reportedly filed a FINRA complaint alleging $1 million in losses suffered as a result of investing in UPS stocks. These investments were allegedly unsuitable, as the price of the option was close to or below the share price at the time of the sale, which would make it very expensive to buy back the option. Additionally, if the stock was called away, investors would be subject to large capital gains taxes. The legal claims brought against Merrill Lynch include unsuitable recommendations, misrepresentations and omissions of material facts and failure to supervise
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Merrill Lynch may be liable for investment or other losses suffered by its customers.
Erez Law represents investors in the United States for claims against Merrill Lynch financial advisors who recommended an investment strategy concentrated in UPS stocks through the company’s employee stock purchase plan or managers incentive program. If you were a client of Merrill Lynch or another firm, and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.