NOTICE TO WELLS FARGO CUSTOMERS WITH MARGIN ACCOUNTS: KlaymanToskes Commences Investigation into Damages Sustained by Investo...
April 09 2020 - 9:37PM
Business Wire
KlaymanToskes (“KT”), www.klaymantoskes.com, announced today
that it is investigating damages sustained by investors with Wells
Fargo & Company (NYSE:WFC) (“Wells Fargo”) accounts who were
forced to sell securities due to margin calls. The investigation
focuses on Wells Fargo’s potential negligence and mismanagement of
leveraged accounts. Recently, investors quickly saw the major stock
indices lose significant value after closing on Friday, February
21, 2020, at near 52-week highs. The market volatility has been
precipitated by COVID-19. Many investment portfolios, like the
stock indices, have also seen tremendous declines, leaving
leveraged accounts especially at risk of margin calls.
The use of securities in an investment account to collateralize
margin loans exposes investors to leverage, which increases the
risk in an account. Margin abuse can result in excessive use of
margin loans or the failure to utilize risk management strategies
to protect account collateral. Therefore, Wells Fargo and its
financial advisors are required to disclose to investors the risks
of the use of margin. Additionally, the failure to use risk
management strategies directly exposes an investor’s leveraged
account to margin calls due to fluctuations in the volatile
securities markets. Those margin calls may result in the forced
sale of securities.
The sole purpose of this release is to investigate whether
strategies deployed by Wells Fargo were suitable for investors
whose investment accounts were leveraged by a margin loan and
received calls forcing the sale of securities. Investors who held
leveraged accounts at Wells Fargo and have information relating to
the manner in which the firm handled their portfolios, are
encouraged to contact the attorneys of KlaymanToskes at (561)
542-5131, or visit our firm’s website at www.klaymantoskes.com.
About KlaymanToskes
KT is a leading national securities law firm which practices
exclusively in the field of securities arbitration and litigation
on behalf of retail and institutional investors throughout the
world in large and complex securities matters. The firm represents
high net-worth, ultra-high net-worth, and institutional investors,
such as non-profit organizations, unions, public pension funds, and
multi-employer pension funds. KT has office locations in
California, Florida, New York, and Puerto Rico.
Destination:
https://klaymantoskes.com/notice-to-wells-fargo-customers-with-margin-accounts/
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version on businesswire.com: https://www.businesswire.com/news/home/20200409005862/en/
KlaymanToskes Lawrence L. Klayman, Esq. (561) 542-5131
lklayman@klaymantoskes.com www.klaymantoskes.com
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