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Kirby McInerney Investigates So-Called “Collateral Yield Enhancement” or “CYES” Options Trading Strategy Which Caused Significant Losses to High Net Worth Clients of Merrill Lynch, Morgan Stanley, and Other Firms

Business Wire



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Investors injured by overly risky account “overlay” may have
meritorious arbitration claims.

Adequacy of disclosures and level of portfolio margining and
diversification are investigated.

NEW YORK–(BUSINESS WIRE)–$BAC #investorrights–Investor rights attorneys at the law firm of Kirby
McInerney LLP
are investigating potential securities arbitration
claims against Merrill
and other financial advisory firms in connection with a risky options
trading strategy – dubbed the Collateral Yield Enhancement Strategy or
CYES – which caused substantial losses to numerous high net worth

Injured investors may have meritorious securities arbitration claims and
are urged to contact Kirby McInerney partner Mark
A. Strauss
at 212-371-6600 or by email at
for a free consultation.

Iron-Condor options trading strategy causes steep investor losses

The Collateral Yield Enhancement Strategy involved borrowing against or
“margining” investors’ conservative stock or bond portfolios to invest
in “Iron Condor” options trading structures managed by a third-party
investment advisory firm, Harvest
Volatility Management
. An Iron Condor is a well-known trading
strategy that involves a pair of options “spreads.”

Harvest’s Iron Condors involved selling or “writing” short-dated “out of
the money” call and put options on the S&P 500 Index, while
simultaneously buying call and put options on that Index which were
further “out of the money”. The objective was to generate income through
the premiums received on the options that were sold, while containing
risk and minimizing losses through the options that were purchased.

Financial advisors and private wealth managers promoted the CYES
strategy to high net worth and ultra-high net worth clients as a safe
account “overlay” which would boost returns with minimal risk, and which
would perform best in periods of low stock market volatility.

In December 2018, however, the stock markets experienced large price
swings and surging volatility, resulting in massive losses for investors
in the CYES options trading strategy.

In the aftermath, on April 22, 2019, investment management firm Victory
Capital announced that it was withdrawing from a deal to acquire Harvest
for roughly $300 million. Apparently, due to the substantial account
drawdowns that CYES investors suffered, Harvest’s revenues (which are
based on the amount of assets under management) had declined by more
than 20%, thus triggering the termination
of Victory’s acquisition agreement. Indeed, Victory Capital
cited “recent adverse market conditions affecting [Harvest]’s largest
investment strategy” – which was CYES – as the reason for nixing
the deal

In addition, numerous investors reportedly filed arbitration complaints
with the Financial Industry Regulatory Authority (FINRA) to recoup their

Adequacy of risk disclosures investigated

Attorneys at Kirby
with substantial experience litigating complex securities
matters are investigating whether investors in the Collateral Yield
Enhancement Strategy options trading strategy were misled by their
financial advisors or private wealth managers as to the strategy’s risks
– both before investing and on a continuing basis as market volatility
showed signs of increasing.

Also being investigated is whether, as a result of their CYES options
trading positions, client accounts were overleveraged through excessive
use of portfolio margin or were inadequately diversified, and whether
the Iron Condor options structures utilized were appropriately staggered
and laddered to minimize risk and avoid excessive losses.

It is believed that investors injured by the CYES options trading
strategy include high net worth and ultra-high net worth clients of Merrill
, Morgan
, Charles
and Fidelity,
as well as of independent Registered Investment Advisors (RIAs)
affiliated with the investment clearinghouse BNY
Mellon Pershing
All are firms which reportedly partnered with Harvest to offer the CYES
account “overlay”, according to a March
2017 article on

If you suffered losses investing in the CYES options trading strategy
and would like to discuss your legal rights – including the possibility
of filing an arbitration complaint with FINRA – please contact attorney Mark
A. Strauss
of Kirby McInerney at 212-371-6600 or by email at
The consultation is free; there is no cost to you.

About Kirby McInerney LLP

McInerney LLP
is a New York-based law firm representing plaintiffs
in securities, whistleblower, antitrust, and consumer litigation
throughout the country. The firm is committed to the aggressive pursuit
of justice and championing the rights of investors through arbitrations,
class actions, and individual lawsuits. The firm’s efforts on behalf of
investors in securities litigation and arbitration have resulted in
recoveries totaling billions of dollars. The firm has been profiled by as one of the “Most
Feared Plaintiffs’ Firms
,” and named to The National Law Journal’s
Plaintiffs’ Hot List. Additional information about the firm can be found
on the firm’s website at

This press release may be considered Attorney Advertising in some
jurisdictions under applicable law and rules of professional
responsibility. Prior results do not guarantee similar outcomes.


Mark A. Strauss, Esq.
Kirby McInerney LLP
250 Park Avenue,
Suite 820
New York, N.Y. 10177
Tel: (212) 371-6600

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Business Wire

Bermuda Government, Industry Group Heads to Toronto

Business Wire



Reading Time: 2 minutes

HAMILTON, Bermuda–(BUSINESS WIRE)–#Bermuda–Bermuda Finance Minister Curtis Dickinson leads a delegation of
government, regulatory and industry representatives to Toronto next week
to highlight Bermuda’s close links to Canada and opportunities for
bilateral trade and investment.

The delegation will take part in a
one-day multi-industry forum
, hosted by the Bermuda Business
Development Agency (BDA) Wednesday, June 19 at The Ritz-Carlton Toronto,
and also attend scheduled business development meetings around the city.
Featuring informative panel discussions, thought-leadership sessions,
and networking opportunities for investors and businesses interested in
learning more about the island, the forum is the sixth in a series of
overseas multi-industry showcases, following successful events in
London, New York and Miami over the past two years. It is the first in

“We’re looking forward to meeting civic leaders, media, investors and
industry executives during the forum and related meetings,” said BDA CEO
Andy Burrows. “The aim is to increase awareness of Bermuda as a
gold-standard international financial centre and underscore our
jurisdiction’s historic and mutually beneficial relationship with
Canadian markets.”

The Consul General of Canada in New York, Phyllis Yaffe, will help
launch the forum with a fireside chat-style conversation with Minister
Dickinson. Another highlight of the day will be a keynote presentation
by Lucia Gallardo, a fintech entrepreneur who has partnered with the
United Nations to leverage blockchain systems to help resettlement of
refugees, among other projects.

Industry sessions include participants from more than 30 Bermuda-related
entities, among them, AMBIKA, Aon, Appleby, ArcTern Ventures, ASW Law,
AXA XL, the Association of Bermuda Insurers & Reinsurers (ABIR); Bennett
Jones, the Bermuda Insurance Management Association (BIMA), Bermuda
Monetary Authority (BMA), Bermuda Tourism Authority (BTA), Butterfield
Bank, ChainThat, Conyers, CryptoScan, Deloitte, Estera Services,
Exponential Ventures, EY, Fasken, Insurance Bureau of Canada (IBC),
KPMG, Kroll Bond Rating Agency, MQ Services, Outlier Canada, PwC, Quest
Management Services, RGAx, SALT Lending, and Shyft Network.

Canada is one of Bermuda’s most significant economic partners, with
two-way trade between the two nations amounting to USD$2.6 billion in
2017, and $37 billion in mutual assets and investments. Bermuda supports
an estimated 25,000 jobs in Canada, including 15,000 from multi-national
companies in Bermuda and their Canadian affiliates and represents
Canada’s fifth-largest export market in trade and services; only the US,
UK, Germany and France are greater Canadian export markets.

To register for the free, one-day forum, go to:


The BDA encourages direct investment and helps companies start up,
re-locate or expand their operations in our premier jurisdiction. An
independent, public-private partnership, we connect you to industry
professionals, regulatory officials, and key contacts in the Bermuda
government to assist domicile decisions. Our goal? To make doing
business in Bermuda smooth and beneficial.


Rosemary Jones
Head of Communications &
278-6558 or 441 337-4696

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Business Wire

LEAD PLAINTIFF DEADLINE ALERT: Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses In Apple, Inc. To Contact The Firm

Business Wire



Reading Time: 3 minutes

NEW YORK–(BUSINESS WIRE)–Faruqi & Faruqi, LLP, a leading national securities law firm, reminds
investors in Apple, Inc. (“Apple” or the “Company”) (NASDAQ:AAPL) of the
June 17, 2019 deadline to seek the role of lead plaintiff in a federal
securities class action that has been filed against the Company.

If you invested in Apple stock or options between November 2, 2018
and January 2, 2019
and would like to discuss your legal rights, click
There is no cost or obligation to you.

You can also contact us by calling Richard Gonnello toll free at
or at 212-983-9330 or by sending an e-mail to

The lawsuit has been filed in the U.S. District Court for the Northern
District of California on behalf of all those who purchased Apple common
stock between November 2, 2018 and January 2, 2019 (the “Class Period”).
The case, City of Roseville Employees’ Retirement System v. Apple
Inc., et al.,
No. 19-cv-2033 was filed on April 16, 2019.

The lawsuit focuses on whether the Company and its executives violated
federal securities laws by failing to disclose that: (1) the U.S.-China
trade war had negatively impacted demand for iPhones and Apple’s pricing
power in greater China; (2) due to Apple discounting the cost of
replacement batteries to make up for the Company’s prior conduct of
intentionally degrading the performance of the batteries in older
iPhones, the rate at which Apple customers were replacing their
batteries in older iPhones, rather than purchasing new iPhones, was
negatively impacting Apple’s iPhone sales growth; (3) as a result of
slowing demand, Apple had slashed production orders from suppliers for
the new 2018 iPhone models and cut prices to reduce inventory; and (4)
defendants’ decision to withhold unit sales for iPhones and other
hardware, which was a metric relevant to investors and their view of the
Company’s financial performance, was designed to and would mask declines
in unit sales of the Company’s flagship product.

On January 2, 2019, after the close of trading, Apple disclosed that,
for the first time in 15 years, Apple would miss its prior quarterly
revenue forecast amid falling iPhone sales in China, its third-largest
market after the United States and Europe. The Company announced first
quarter fiscal 2019 revenues of only $84 billion, far below the expected
range of $89 billion to $93 billion the Company had announced just eight
weeks earlier on November 1, 2018. The Company also admitted that in
addition to macroeconomics in the Chinese market, the price cuts to
battery replacements a year earlier to fix the Company’s prior
surreptitious conduct had hurt iPhone sales.

On this news, the Company’s stock price fell from $157.92 per share on
January 2, 2019 to $142.19 per share on January 3, 2019—a $15.62 or
9.96% drop.

The court-appointed lead plaintiff is the investor with the largest
financial interest in the relief sought by the class who is adequate and
typical of class members who directs and oversees the litigation on
behalf of the putative class. Any member of the putative class may move
the Court to serve as lead plaintiff through counsel of their choice, or
may choose to do nothing and remain an absent class member. Your ability
to share in any recovery is not affected by the decision to serve as a
lead plaintiff or not.

Faruqi & Faruqi, LLP also encourages anyone with information regarding
Apple’s conduct to contact the firm, including whistleblowers, former
employees, shareholders and others.

Attorney Advertising. The law firm responsible for this advertisement is
Faruqi & Faruqi, LLP (
Prior results do not guarantee or predict a similar outcome with respect
to any future matter. We welcome the opportunity to discuss your
particular case. All communications will be treated in a confidential


685 Third Avenue, 26th Floor
York, NY 10017
Attn: Richard Gonnello, Esq.
(877) 247-4292 or (212) 983-9330

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Business Wire

Three Finalists Selected Following GA-ASI’s Blue Magic Belgium Event

Business Wire



Reading Time: 2 minutes

PARIS–(BUSINESS WIRE)–Three finalists have been selected from GA-ASI’s Blue Magic Belgium
event with the goal of supporting GA-ASI and the development of MQ-9B
SkyGuardian Remotely Piloted Aircraft (RPA) for Belgium. The three
Belgian companies selected are AIRobot, ALX Systems, and Hexagon.

AIRobot, a company based at DronePort in Sint Truiden, Belgium, focuses
on developing drone performance equipment for easy, precise and safe
professional operations, while specializing in Artificial Intelligence
(AI) for processing hyper-spectral imagery. ALX Systems is an Unmanned
Aircraft System (UAS) solution provider based in Liège, Belgium and
specializing in AI for processing Full Motion Video. Hexagon’s
Geospatial division, with an office in Leuven, Belgium, specializes in
software solutions and geospatial tools for visualizing location
intelligence, such as auto-routing UAS and creating a smart digital

GA-ASI held outreach events in Belgium May 15-16 with the goal of
identifying small to medium-sized Belgian companies that can support
SkyGuardian development through cutting-edge technologies. This followed
the Government of Belgium’s approval for Belgian Defense to negotiate
acquisition of GA-ASI’s SkyGuardian to meet the nation’s RPA

“We were very impressed by the many talented companies and particularly
by the innovative concepts presented by these three finalists,” said
Linden Blue, CEO, GA-ASI.

Blue Magic Belgium was a Research and Development (R&D) event held in
two regions of Belgium. Approximately 50 related companies registered
for the event and 19 companies were selected to present their innovative
technologies to a technical panel of experts from GA-ASI. GA-ASI is
committed to placing $3 million in R&D funding with Belgium industry.
This investment will focus on high-value technological development with
small to medium-sized enterprises. The seed funds will be utilized to
develop Belgian capabilities that meet Ministry of Defense (MOD) and
industry objectives to be competitive in future European RPA programs.

About GA-ASI

General Atomics Aeronautical Systems, Inc. (GA-ASI), an affiliate of
General Atomics, is a leading designer and manufacturer of proven,
reliable Remotely Piloted Aircraft (RPA) systems, radars, and
electro-optic and related mission systems, including the Predator®
RPA series and the Lynx® Multi-mode Radar. With more than
five million flight hours, GA-ASI provides long-endurance,
mission-capable aircraft with integrated sensor and data link systems
required to deliver persistent flight that enables situational awareness
and rapid strike. The company also produces a variety of ground control
stations and sensor control/image analysis software, offers pilot
training and support services, and develops meta-material antennas. For
more information, visit

Predator and Lynx are registered trademarks of General Atomics
Aeronautical Systems, Inc.


Robert Walker
General Atomics Aeronautical Systems, Inc.
(858) 524-8101

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