FINRA Arbitration Panel Finds Broker-Dealer Liable For Compensatory Damages and Other Costs

A FINRA arbitration panel ordered UBS Financial Services to pay a widow over $1.2M in compensatory damages and costs after ruling that the firm was liable for losses sustained in her variable annuity case. The law firm Shepherd Smith Edwards and Kantas highlights this victory to demonstrate how their experienced FINRA Attorneys can help investors recover losses caused by broker misconduct and negligence.

UBS Financial Services must pay a widow more than $1.2M after a FINRA arbitration panel ruled in the Claimant’s favor. She had sued the brokerage firm over losses in a variable annuity that she bought using her retirement money.

In her FINRA lawsuit, this investor alleged unsuitability, breach of contract, negligent supervision, common law fraud, omission, and misrepresentation, and more. Now, UBS must pay more $1.17M in compensatory damages, over $36K in costs, as well as other fees.

This Claimant had purchased a variable annuity in 2013. Funds were also lent on margin to this investor, which she brings up in her case. She alleged breach of fiduciary duty.

With its high fees, illiquidity, and the kinds of risks involved, variable annuities are considered unsuitable for most retirees. Borrowing on margin is considered a risky investment strategy for this demographic as well. Any amplified losses that occur could take a significant bite out of a senior investor’s retirement savings.

UBS’s advisory practices, which have included encouraging clients to borrow on margin, have come under scrutiny for some time now. Many investors sued and secured financial recovery after they suffered losses in the brokerage firm’s Yield Enhancement Strategy (YES) program.

Earlier this month, UBS lost its appeal after asking that the $92M FINRA arbitration award it was ordered to pay be vacated. Investors had accused the brokerage firm of unsuitable recommendations involving the shorting of Tesla stock. That award included $69M in punitive damages.

Are You An Investor Who Suffered Losses While Working With A UBS Broker?

Shepherd Smith Edwards and Kantas FINRA attorneys (investorlawyers.com) represent investors who sustained serious losses because of financial advisor misconduct or negligence involving a UBS broker. We are a seasoned securities law firm that has the resources, knowledge, and skills to go up against the largest Wall Street firms.

Disputes between brokers and investors are brought to FINRA arbitration. Our FINRA attorneys are knowledgeable about the strategies that work best in this forum, as well as in litigation and in mediation. Over the decades, we have secured a collective many millions of dollars for thousands of investors.

I’m An Investor. Why Do I Need To Hire Securities Lawyers To Go After My Broker?

• You need seasoned FINRA attorneys who know how to fight for your financial recovery in arbitration.
• As the Claimant it is on you to prove negligence or misconduct. A quality securities law firm will know the necessary steps to take.
• Your broker will have their own attorney protecting them. You need a broker fraud lawyer to protect you.
• You want to maximize your chances for full financial recovery.

How Much Will It Cost To Hire Shepherd Smith Edwards and Kantas FINRA Attorneys As My Securities Representation

We work on a contingency basis. This means we are only paid for our securities law services if we win an award or secure a settlement for you. Payment would come out of what you obtain from the liable party.

Explore Your Legal Options Today

Call (800) 259-9010 or contact us online.