NEW YORK, Oct. 20, 2022 (GLOBE NEWSWIRE) — Investors who have suffered losses from holding concentrated or margin positions in SKLZ and other mobile gaming stocks may hold their brokerage firms liable in FINRA arbitrations.

National investment fraud attorneys KlaymanToskes (“KT”) is investigating the failure of full-service brokerage firms to apply risk management strategies to current and former employees and investors of SKLZ (NYSE: SKLZ). The sharp drop over the past year has put unhedged concentrated positions at risk and exposed any failure to use such strategies.

Yesterday, SKLZ, a SPAC, closed at $0.88 and continues to fall. This represents a 98% decline from its all-time high of $43.72 in February 2021. As a result, SKLZ shareholders who held a concentrated position and used it as collateral for margin loans were likely to receive a margin call and a significant portion of their shares it was liquidated.

According to securities attorney Lawrence L. Klayman, Esq., “Investors who hold large positions and are not diversified need to employ risk management strategies. Financial advisors have an obligation to their clients to recommend risk management strategies involving concentrated equity positions. A failure of a consultant is the basis for a FINRA arbitration claim.”

KlaymanToskes recommends that investors with concentrated and/or margin positions contact securities attorney Lawrence L. Klayman, Esq. at 1-888-997-9956 and download our Special report for investors.

About Klayman Toskes

KlaymanToskes is a leading national securities law firm practicing exclusively in the practice of securities arbitration and litigation on behalf of retail and institutional investors around the world on large and complex securities matters. The firm has recovered more than $250 million for investors in FINRA arbitrations and over $350 million in other securities disputes for its clients. KlaymanToskes has offices in California, Florida, New York and…