A FINRA arbitration panel ordered UBS Financial Services to pay $5.5M to a client for the improper handling of Compass Inc. shares and options during its 2021 IPO. The article highlights UBS’s history of high-value losses in litigation and invites affected investors to seek recovery through Shepherd Smith Edwards and Kantas.
Broker-Dealer Held Liable Over Handling of Investor’s Portfolio
A FINRA arbitration panel has ordered UBS Financial Services (UBS) to pay $5.5M to one client over its allegedly improper handling of his shares and options in real estate brokerage firm Compass Inc. around its 2021 initial public offering. The claimant happens to be a Compass real estate broker. He accused the brokerage firm of breach of fiduciary duties, deliberate and negligent misrepresentations, Regulation Best Interest violation, negligence, and other broker misconduct involving UBS’ recommendations and management of his portfolio.
This is not the first time UBS has lost costly litigation over its handling of risky, even volatile, investment products and strategies. Here are a few examples:
- The brokerage firm paid wealthy customers many millions of dollars for losses they sustained in UBS YES (Yield Enhancement Strategy). UBS made misrepresentations that this was alow-risk and conservative options trading strategy when, in fact, it was a high-risk options trading strategy.
- The Puerto Rico Bond funds debacle, in which UBS-PR was one of the main brokerage firms to sell the US territory’s local bonds, as well as its own property bond funds, to thousands of customers, more because it was in the brokerage firm’s best interests than in the best interests of its retail investors, retirees, and mom and pop clients. When the bond market tanked, these investors were left with devastating losses.
- In 2025, a FINRA arbitration panel awarded $92.2M, including punitive damages, to nine investors who accused the brokerage firm of using a high-risk trading strategy that involvedshorting Tesla shares.
Shepherd Smith Edwards and Kantas Broker Fraud Lawyers (investorlawyers.com) has been representing investors against UBS for years. We sued them for investors who suffered losses in UBS YES and in the Puerto Rico bond funds, and we won arbitration awards and settlements from the brokerage firm.
How Can Our Trusted Broker Fraud Lawyers Help You With Your UBS Loss Claim?
With over 100 years of collective experience in securities law and the industry, our team at Shepherd Smith Edwards and Kantas Broker Fraud Lawyers represents investors in even the most complex claims against brokerage firms, including the largest Wall Street Firms.
We have the skills, knowledge, and experience to maximize each of our clients’ chances for financial recovery. This has led to thousands of investors securing many millions of dollars in awards and settlements through our dedicated efforts.
Contact Our Broker Fraud Lawyers Today:
Call (800) 259-9010 or contact us online to schedule your free case assessment.