UBS AG Summary: According to the law firm press release, the complaint alleges that during the Class Period, defendants made materially false and misleading statements regarding UBS’s disclosure controls, procedures and internal controls over financial reporting, stating that these controls and procedures were effective when, in fact, they were not. This became apparent on September 15, 2011, when UBS disclosed that a supposed rogue trader, Kweku Adoboli (“Adoboli”), had engaged in unauthorized trades on behalf of UBS that resulted in losses of $2.3 billion. As a result of this disclosure, the price of UBS stock dropped over 10% in a single day. Subsequently, defendants stated in an SEC filing that “we have determined that certain controls designed to prevent or detect the use of unauthorized and fictitious transactions on a timely basis were not operating effectively” and “our previous evaluation stating that our disclosure controls and procedures were effective on 31 December 2010 . . . should no longer be relied upon.”
On January 30, 2012, The Wall Street Journal reported that British and Swiss regulators were likely to begin enforcement proceedings against UBS for the gaps in oversight that had allowed Adoboli to make the trades at issue. On that same day, Adoboli pleaded not guilty to criminal charges in London.
On October 1, 2012, a Consolidated Complaint for Violations of the Federal Securities Laws was filed by the plaintiffs.
On March 04, 2013, an Amended Consolidated Complaint for Violations of the Federal Securities Laws was filed by the plaintiffs.
SIC Code: 6021
Industry: Investment Services
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