ATTENTION HERTZ EMPLOYEES/INVESTORS: KlaymanToskes Commences Investigation into Damages Sustained in Hertz Stock held with Fu...
May 06 2020 - 1:12PM
Business Wire
KlaymanToskes (“KT”), www.klaymantoskes.com, announced today
that it is investigating damages sustained by current and former
employees and investors of Hertz Global Holdings (NYSE:HTZ)
(“Hertz”) who held large, unhedged concentrated positions in Hertz
stock and/or received margin calls resulting in the forced sale of
stock. The recent losses were the result of unsuitable advice
during the Coronavirus (“COVID-19”) pandemic. The investigation
focuses on full-service brokerage firms’ negligence and failure to
supervise the management of concentrated, leveraged positions in
Hertz stock.
Investment portfolios holding large, concentrated stock
positions carry significant downside risks, especially when
leveraged by a margin loan. Full-service brokerage firms whose
customers hold large concentrated stock positions have a duty to
ensure that their customers understand the risks associated with
concentration and to disclose and recommend the availability of
risk management strategies. 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 fluctuations in the volatile securities markets. Since
trading as high as 20.85 per share in February 2020, the price of
Hertz stock dropped to 2.80 on May 5, 2020, a decline of more than
86%. Hertz was granted forbearance from lenders until May 22, in an
effort to stave off filing for bankruptcy.
The sole purpose of this release is to investigate whether
strategies deployed by full-service brokerage firms were suitable
for Hertz employees and investors with concentrated, leveraged
stock positions. Hertz shareholders who held accounts at
full-service brokerage firms, and have information relating to the
manner in which the firm handled their concentrated, leveraged
portfolios are encouraged to contact Lawrence L. Klayman, Esq., at
(561) 542-5131, and download our Special Investor Report.
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 and multi-employer
pension funds. KT has office locations in California, Florida, New
York, and Puerto Rico.
Destination:
https://klaymantoskes.com/attention-hertz-employees-investors
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version on businesswire.com: https://www.businesswire.com/news/home/20200506005817/en/
KlaymanToskes Lawrence L. Klayman, Esq., (561) 542-5131
lklayman@klaymantoskes.com www.klaymantoskes.com
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