FINRA Awards Are Considered Final, Which Is Why Investors Should Hire Seasoned FINRA Attorneys To Represent Their Case

A federal judge recently upheld a $92M arbitration award against UBS, reinforcing the reality that FINRA decisions are final and extremely difficult for brokerage firms to vacate. To navigate this high-stakes legal forum, investors should retain seasoned FINRA Attorneys who understand how to secure and protect multi-million dollar recoveries.

U.S. District Judge Stephanie M. Rose rejected UBS Financial Services’ efforts to vacate a $92M Financial Industry Regulatory Authority (FINRA) arbitration award imposed against the brokerage firm after several of its customers sued over what they contend was an unsuitable, aggressive, short-selling strategy involving Tesla (TSLA) stock.

The Claimants had accused UBS and its broker Andrew Burish of breach of fiduciary duty, fraud, negligent supervision, negligent misrepresentations, and more. They requested more than $23M in damages.

The FINRA arbitration panel awarded them $92.2M: $23.1M in compensatory damages and $69.1M in punitive damages. Andrew Burish, who has been a broker for more than 40 years, was ordered to pay $3.1M of the total award.

UBS tried to get the award vacated. However, in her order, Judge Rose said the brokerage firm failed to demonstrate that the FINRA arbitration panel went beyond its scope of authority when it imposed such a high punitive damage amount. The Claimants are also now entitled to 6.13% in postjudgment interest since February 28, 2025.

What To Know About FINRA Arbitration Awards

• Brokerage firm-customer disputes are usually filed in FINRA arbitration.
• Except in limited circumstances, an award issued by a FINRA arbitration panel is considered final and usually cannot be appealed or reviewed in this legal forum. This is one of the many reasons why, if you are an investor who wants to sue your broker, it is essential that you hire experienced FINRA lawyers from the start if you want to maximize your chances for a full financial recovery.
• A party in a FINRA arbitration case can try to challenge an award, but they will have to file their motion in federal or state court.
• A FINRA arbitration award can only be overturned under limited grounds, such as corruption, fraud, an arbitrator making a mistake or exceeding the scope of their role, or a lack of factual or reasonable grounds for the award.

I’m An Investor Who Won A FINRA Award. When Will My Broker-Dealer Pay Up?

Your broker-dealer or financial advisor is supposed to pay you the award within 30 days. Failure to pay can lead to suspension or cancellation of their registration status with FINRA. Without this registration, they cannot work in the securities industry.

Shepherd Smith Edwards and Kantas Represents Investors Against Wall Street Firms, Such as UBS, in FINRA Arbitration

Suing your broker in FINRA arbitration is not the same as doing so in court. Our broker misconduct attorneys have secured FINRA arbitration awards and settlements for the majority of our clients.

Talk To Us About Your Investor Losses

When you work with Shepherd Smith Edwards and Kantas (investorlawyers.com), you are hiring a seasoned securities law firm that has the knowledge, resources, and commitment to take on your FINRA lawsuit and see it to its conclusion.

Call (800) 259-9010 or contact us online to request your free case assessment.