If you have sustained financial losses due to a Sim card swapping hack or other security breaches we strongly encourage you to contact Levin Law, P.A. for a free case evaluation.
UBS is facing a $23 million claim after a financial advisor promoted the idea of short-selling shares of Tesla, Inc. (TSLA) from 2019 to 2020. Short selling is a risky strategy that relies on the price of a stock declining. The price of Tesla stock has grown exponentially from around $60 per share in 2019 to a 52-week high of over $900 this year.
At Levin Law, P.A., we represent investors who have suffered losses as a result of a broker’s or financial advisor’s unsuitable recommendation. Harmed investors may be entitled to compensation through a FINRA arbitration claim.
If you have suffered losses due to a recommendation in a risky strategy like short selling, contact Levin Law, P.A. at (305) 402-9050 or email firstname.lastname@example.org for a free case evaluation.
According to a customer dispute against UBS financial advisor Andrew Burish, from September 2019 until July 2020, a group of investors was recommended an “unsuitable and risky strategy of selling the stock of Tesla short.” Furthermore, the investors were advised to continue to hold the positions despite mounting losses. Damages were requested in the amount of $23,085,874.
Short-selling is considered an extremely risky strategy that involves significant speculation that the stock will decline in value. Borrowed shares are sold to be bought back later at a lower price. The seller chooses a stock that he or she believes will decrease in value. It is a precarious strategy that should only be employed by sophisticated investors.
In most cases, the strategy is done at the recommendation of a broker or financial advisor. The problem with the strategy is that if the share increases in value, the seller may sustain unbearable losses.