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Finra Panel Awards UBS $9.72M

By Alex Padalka May 22, 2018

A Finra panel has ruled in favor of UBS Financial Services of Puerto Rico in a case the wirehouse brought against one of its former clients with whose ex-wife UBS had previously settled, according to an award document from the regulator’s office for dispute resolution.

In January 2017, UBS filed a claim against David Efron asserting contractual indemnification, unjust enrichment and equitable contribution, according to the award document. The wirehouse filed the claim in relation to a post-judgment settlement it had made to Efron’s ex-wife, identified as “the Candelario litigation,” in the U.S. District Court for the District of Puerto Rico. UBS sought $4.5 million in compensatory damages, pre-judgment interest, lawyers' fees and costs related to this claim as well as the Candelario litigation, Finra says.

In his counterclaim filed in April 2017, Efron sought the dismissal of all claims, attorneys' fees and costs, and compensatory damages of more than $4 million, according to the award document. UBS eventually requested $9.72 million in total damages, Finra says. Efron then requested a motion to dismiss UBS’s claims on the grounds that the events leading to the claims had occurred 10 and 12 years prior to the filing, according to the award document.


Last week, the Finra panel ruled that Efron is liable for the entire $9.72 million sought by UBS, the wirehouse’s claim filing fee as well as its lawyer fees, to be determined in court, Finra says.