Feb. 13 at 8:51 PM
An arbitration panel ordered UBS to pay
$5.5 million plus interest to New York real estate broker Kyle Blackmon, who had sought nearly
$20 million in damages over claims the firm mismanaged his employee stock options.
The case, heard in a forum organized by Financial Industry Regulatory Authority (Finra), focused on UBS’s handling of Blackmon’s holdings and unexercised options in Compass around its April 2021 IPO. The arbitration award cited recommendations and portfolio management decisions tied to his Compass shares before, during, and after the listing.
Blackmon alleged UBS violated Regulation Best Interest, failed to properly supervise its advisory staff, breached account agreements, and made intentional and negligent misrepresentations.
The panel awarded
$5.375 million in compensatory damages plus
$125,000 in costs. UBS declined to comment on the ruling or say whether it would challenge the decision.
$UBS $COMP