UBS PayPal & Square Autocallable Notes Results inPotential Significant Investor Risk
The White Law Group is investigating potential securities lawsuits involving UBS PayPal and Square Autocallable Notes.
Investors who purchased a structured product from UBS linked to PayPal Holdings Inc. and Square, Inc. may face significant downside risk depending on stock performance.
The structured note in question—UBS’s Contingent Income Auto-Callable Securities based on the common stocks of PayPal and Square (CUSIP: 90279B555)—was issued in July 2021 with a face value of $15,401,010. The note’s performance is based on the worst-performing of the two stocks, which could substantially reduce or eliminate the final payout.
Details of the Investment
- Issue Date: August 2, 2021
- Linked Securities: PayPal Holdings Inc. (NASDAQ: PYPL) and Square, Inc. (now Block, Inc., NYSE: SQ)
- Product Type: Contingent Income Auto-Callable Structured Note
- Face Value: $15,401,010
- Final Payout: Depends on the lowest-performing stock on August 2, 2024
- If both stocks ? $192.86 (70% of lowest initial): $10 + final coupon ($0.35) per note
- If lowest performer < $192.86: $10 × (final stock price ÷ initial) — potential loss of principal
- Total Loss Potential: Up to 100% of principal if the lowest-performing stock closes below the downside threshold on final valuation
Why Could the Investment Lose Value?
Multi-equity autocallable notes expose investors to risk based on the worst-performing stock. In this case:
- Automatically called if both PayPal and Square stocks close ? $275.51 on any observation date
- If not called, and either stock falls below $192.86 (70% of initial), investor suffers proportionate loss
- No coupon if either stock closes below the coupon barrier on a given date
- Estimated initial value at issuance: $9.575 per $10 note
Understanding the Risks of Autocallable Notes
While these notes offer enhanced yields, the risks include:
- Market risk of both PayPal and Square
- Credit risk of UBS AG
- Exposure to worst-performing stock
- No guaranteed income or return of principal
- Not FDIC insured
Did Your Financial Advisor Recommend This
Investment?
Financial advisors must recommend investments suitable for each client’s risk profile. If this dual-stock autocallable note was sold without fully explaining the risks, you may have a claim for recovery through FINRA arbitration.
FINRA Arbitration vs. Class Action
- Arbitration suits larger, individualized investor losses
- Class actions apply to uniform, smaller claims across many investors
Free Consultation
The White Law Group is investigating potential claims involving UBS PayPal & Square Autocallable Notes. If you suffered investment losses, call (888) 637-5510 for a free consultation.
Visit www.whitesecuritieslaw.com to learn more about investor rights and active investigations.
Last modified: June 4, 2025
