In early December, 2016, UBS was hit with an $18 million arbitration award because of various breaches of duties regarding its sale of poor performing Puerto Rican bonds. The Claimant in the case alleged breach of fiduciary duty, breach of contract, negligence, negligent supervision, unsuitable investments and strategy, failure to supervise and the failure to comply with the requirements set forth in the “Laws of Banks of Puerto Rico.” The causes of action relate to the Claimant’s investments in Puerto Rico closed-end mutual funds concentrated in Puerto Rico bonds heavily peddled by UBS brokers. The Panel awarded $12.7 million in compensatory damages, $2.5 million in interest, $163,000 in expert witness fees and $3.1 million in attorney fees. It is the largest award to date against UBS for the sales of the Puerto Rico bond funds. The entire award can be viewed at the link below.
http://www.finra.org/sites/default/files/aao_documents/14-02464.pdf
If you are an individual or institutional investor who has any concerns about your accounts and/or investments with UBS, please contact us for a no-cost and no-obligation evaluation of your specific facts and circumstances. You may have a viable claim for recovery of your investment losses by filing an individual securities arbitration claim with the Financial Industry Regulatory Authority (FINRA).