Investigating Full-Service Brokerage Firms for Mismanaging Concentrated, Leveraged Positions in Employer Company Stock

November 6, 2020 Author: Brian Levin
GBP Investors

Levin Law, P.A. Is Investigating Brokerage Firms for Recommendations Related to “Exercise and Hold” Strategies 

The national securities law firm, Levin Law, P.A. (“Levin Law”) is investigating full-service brokerage firms including, but not limited to: Merrill Lynch, UBS Financial Services, Morgan Stanley, J.P. Morgan, and Wells Fargo, which recommended “exercise and hold” strategies related to concentrated, leveraged positions in employer company stock. If your stockbroker, investment advisor, or other financial professional recommended an “exercise and hold” strategy resulting in losses, please contact Levin Law at (305) 402-9050 or via email at contact@levinlawpa.com. Exercise and hold investment strategies may be unsuitable for investors with large, concentrated positions in employer company stock. 

Exercise and Hold Strategies Expose Investors to High Level of Risk

Exercise and hold strategies involve exercising your employee stock option by acquiring shares and holding them for a given period of time. For investors with concentrated, leveraged positions in employer company stock, an exercise and hold strategy can expose them to a high level of concentration risk. An exercise and hold investment strategy is a complex and sophisticated transaction that can have significant tax implications.

In many cases, exercise and hold strategies may be unsuitable for the average investor. If you were recommended this strategy and were not fully and adequately informed of all potential risks, you may be able to recover losses through a Financial Industry Regulatory Authority (“FINRA”) arbitration.

Full-Service Brokerage Firms May Be Responsible for Mismanagement and Failure to Supervise

Brokerage firms are required to establish and implement adequate supervisory systems. If a brokerage firm fails to supervise a representative who ultimately causes a customer to suffer damages, the brokerage firm may be liable to the investor. Full-service brokerage firms have a fiduciary duty to protect investors, by failing to adequately supervise a broker or financial advisor, the brokerage firm may breached that duty.

Contact Levin Law for a Free Case Evaluation

If you were recommended an exercise and hold strategy for your concentrated, leveraged positions in employer company stock and you suffered losses, you may be entitled to recovery through a FINRA arbitration claim. Contact Levin Law managing partner Brian Levin at (305) 402-9050 or email brian@levinlawpa.com for a free case evaluation. We accept most cases on a contingency-fee basis, meaning you are not responsible for Levin Law’s attorney fees unless money is recovered on your behalf.

About Levin Law

Levin Law is a premier national securities and class action law firm with significant experience. Brian Levin, Levin Law’s founding attorney, has helped recover approximately $100,000,000 through securities arbitration and litigation for individual and institutional investors throughout the country and the rest of the world. Levin Law represents retirees, individual investors, high-net-worth investors, ultra-high-net-worth investors, institutions, family offices, trusts, publicly held companies, and others.

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