Securities Arbitration is Your Best Chance to Recover
Your Losses in Bank of America Stock
The Law Firm of Klayman & Toskes, P.A. is actively and aggressively litigating securities arbitration claims against full-service brokerage firms on behalf of investors who lost money in Bank of America (NYSE:BAC) stock (“BofA”). Particularly, the firm has been retained by BofA shareholders who sustained investment losses due to an over-concentration of shares in BofA, held with full-service brokerage firms. Trading at almost $18.00 per share in August of 2009, BofA has declined about 70% and as of October 2011, it is trading around $5.50 per share.
Since 2000, Klayman & Toskes has pioneered the representation of High Net Worth (“HNW”) and Ultra-HNW clients who sustained investment losses as a result of holding concentrated positions in a single security or sector, in full-service brokerage accounts. This representation includes founders of public companies, directors, officers, executives, key employees, owners of closely held businesses, and wealthy families, who received large grants of stock or stock options or Rule 144 restricted stock. The claims, filed in the Financial Industry Regulatory Authority (“FINRA”) Arbitration Department f/k/a NASD and NYSE, focused on the mismanagement of the clients’ portfolios given the fact that there were risk management strategies that would have protected the value of the concentrated portfolio. Such risk management strategies include stop loss and limit orders, protective puts and collars. Stop loss orders, limit orders and protective puts provide an account with downside protection and an exit strategy should the stock decline in value. A hedge strategy, known as a “zero cost” collar, would have created a range of value that the portfolio would have maintained irrespective of the fluctuation and direction of the underlining stock price. The failure to use risk management strategies as well as the failure to “hedge” the value of a concentrated portfolio directly exposes an investor’s concentrated position to the fluctuations in the volatile securities markets.
If your full-service brokerage firm failed to take the appropriate steps necessary to either 1) sell and diversify or 2) implement a risk management strategy to preserve the value of your concentrated BofA position, then a securities arbitration claim against your brokerage firm represents your best method to recover some of your losses. This includes those who acquired BofA stock as a result of participating in BofA’s Stock-based Compensation Plans like the Key Employee Stock Plan, Key Associate Stock Plan, 2002 Associates Stock Option Plan, and the Global Associate Stock Option Program a/k/a Take Ownership! plan, as well as from exercising stock options, receiving restricted stock shares or restricted stock units, or acquiring the stock as a result of holding shares of a former bank employer that was eventually acquired by BofA.
For more information on how to start a claim, or to find out if you have a claim, please contact our law firm for an immediate consultation. Be aware, there are strict time limitations, which in some cases are as short as one or two years. Don’t lose your opportunity to get your money back!
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