A group of nine investors has been awarded $92.2 million in damages by a Finra arbitration tribunal in a case against UBS Financial Services and one of its financial advisors. This dispute centers around losses incurred from a short-selling strategy involving Tesla shares.

The investors alleged that UBS and the advisor recommended maintaining short positions that were not suitable for their risk profiles. Of the total award, $69.1 million is allocated as punitive damages against UBS FS. A lawyer for the plaintiffs pointed out significant supervisory issues at UBS.

A spokesperson for the firm expressed disagreement with the tribunal’s decision, arguing that the investors had previously been successful in short-selling before facing losses. UBS intends to seek a court review of the arbitration award, claiming that the punitive damages do not align with legal standards. The investors began the proceedings in 2021, and the financial advisor involved has had a long tenure at UBS and its predecessor companies since 1984.

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