Fedex employees, current and former, may have claims for failure to provide suitable advice for their large fedex stock holdings. Some employees held concentrated positions in FedEx stock on margin with full-service brokerage firms. In February, 2007, FedEx stock was around $121 per share. The price of Fedex stock declined over 72% over the next two years, closing around $34 per share on March 9, 2009. As a result, many FedEx shareholders who owned FedEx stock on margin most likely received a margin call, and a substantial portion of their fedex stock was sold, resulting in large losses.
FedEx employees who were never advised by their brokerage firm of the risks associated with owning a large amount of fedex stock on margin may have a claim for unsuitable investment advice to hold fedex stock on margin. Additionally, it is also likely that many Fedex employees were never told that they could reduce the risk of holding large amounts of Fedex stock on margin by the use of risk management strategies, like a zero-cost collar, protective put options, stop loss orders and/or an exchange fund, that may have protected their FedEx stock positions.
If you are a former or current FedEx employee who lost money in Fedex stock, we may be able to help. Contact one of our attorneys for a free consultation.
