By Kenneth Corbin
An arbitration panel has ordered UBS to pay $5.5 million, plus interest, to a New York real estate agent who alleged that the brokerage firm mismanaged his stock options in his employer as it was going public. The client, Kyle Blackmon, had been seeking nearly $20 million in damages.
The arbiters, convened in a forum organized by brokerage industry self-regulator Finra, heard allegations that UBS had violated Regulation Best Interest, failed to supervise its advisory staff, and violated various Finra rules. Blackmon also accused UBS of "intentional and negligent misrepresentations," breaching its account agreements, and other misconduct.
UBS declined to comment on the award or whether it plans to contest it. Blackmon's lawyer, Robert Pearce, declined to comment or provide the original statement of claim, citing a confidentiality agreement between the two parties.
Finra provides few details in the summaries of arbitration awards that it makes publicly available.
Blackmon alleged that UBS mismanaged his stock position in Compass, the real estate company where he works as an agent. The award cites "recommendations and management of claimant's portfolio, including but not limited to claimant's unexercised stock options and shares in Compass Inc., before, during and after the Compass initial public offering."
Blackmon's page on Compass' website identifies his role as head of luxury sales and describes him as "one of the most successful brokers in the country" who holds the record for achieving the highest price per square foot for an officially listed residential property.
Compass went public on the New York Stock Exchange April 1, 2021. Blackmon brought his claim Jan. 21, 2025, and UBS responded April 30, 2025.
The arbitration panel ordered UBS to pay Blackmon $5,375,000 in compensatory damages, plus interest, and $125,000 in costs.
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February 13, 2026 15:03 ET (20:03 GMT)
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