The Securities Arbitration Law Firm of Klayman & Toskes (“K&T”), www.nasd-law.com, announced today that it is continuing to investigate claims on behalf of current and former FedEx (NYSE:FDX) employees who held concentrated positions in FedEx stock on margin with full-service Wall Street brokerage firms. On February 26, 2007, FedEx stock was trading at $121 per share. However, over the next two years, the price of the stock declined over 72%, closing at $34 per share on March 9, 2009. As a result, many FedEx shareholders who used their FedEx stock as collateral for margin loans most likely received a margin call and a substantial portion of their stock was liquidated, which led to substantial losses.
Unfortunately, many former and current FedEx employees who held concentrated positions in FedEx stock were never advised by their full-service brokerage firms of the risks associated with owning a concentrated account. Additionally, many firms failed to explain how the use of risk management strategies, like a zero-cost collar, protective put options, stop loss orders and/or an exchange fund, could have been utilized to protect the concentrated FedEx stock positions.
The effect of margin on a concentrated position substantially increases the risk to a concentrated account, and can lead to the liquidation of the stock which precludes the investor from recovering their losses through a potential rebound in the price of the stock. If margin had not been used, the FedEx stock would not have been liquidated to meet the margin call, thereby providing it with an opportunity to recover given that the price of FedEx stock came back in value since 2009. However, with the sale of the stock, an investor’s FedEx stock no longer has the ability to recover.
Current and former FedEx employees who have 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 in FedEx stock, please 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 http://www.nasd-law.com.
Steven D. Toskes, Esquire, 888-997-9956
Jahan K. Manasseh, Esquire, 888-997-9956
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