Overview
On February 28, 2025, a public FINRA Arbitration Panel awarded a class of investors $92.2 million in damages after they sued UBS and financial advisor Andrew Burish for investment fraud and violations of FINRA Rules related to investments in Tesla. According to the filings, Burish recommended an unsuitable, aggressive, and high-risk trading strategy to the investors, which required them to hold short positions in Tesla, Inc. Claimants asserted causes of action for violation of FINRA suitability rules and failure to supervise, to name a couple.
What Are Short Positions?
Generally speaking, short positions allow investors to sell securities at a certain price and buy them back later at a lower price after the price decreases. Short positions are extremely risky, however, because they can lead to unlimited losses if an investor does not understand the investment. Investors need to know the difference between naked and covered shorts, for instance, before engaging in short positions.
Impacted Investors
If you believe that your financial advisor has caused you to lose money by recommending an unsuitable investment strategy such as shorts, do not hesitate to contact our office at 800-556-3526 or complete our contact form for a free consultation. We work on a contingency fee basis to try to recover losses. In other words, if we do not obtain a recovery, you do not owe us any legal fees. Act before time runs out on your claim.