According to the law firm press release, the complaint alleges that, throughout the Class Period, Defendants issued materially false and misleading statements regarding UBS PR CEFs. Specifically, Plaintiffs allege that Defendants promoted UBS PR CEFs' extraordinary market returns, low risk and low volatility, while simultaneously not disclosing that CEFs' prices and liquidity were manipulated by UBS PR's support of the market. The complaint also alleges that Defendants misrepresented and/or did not disclose in the CEFs' offering documents and related communications that: (a) CEF prices were set solely at the discretion of Defendants and not based on market forces such as supply and demand; (b) as the dominant CEF broker-dealer, UBS PR controlled the secondary market for CEFs, and that any secondary market sales investors wanted to make depended largely on UBS PR's ability to solicit additional customers or its own willingness to purchase shares into its inventory; (c) UBS PR was purchasing millions of dollars of CEF shares into its own inventory while promoting the appearance of a liquid market, and thereby artificially propping up prices and creating the appearance of liquidity; and (d) UBS PR's corporate parent was pressuring UBS PR to reduce its inventory of CEF shares as its inventory rose well beyond internal limits. According to the complaint, in selling 75% of its inventory and ceasing to use its inventory to support the CEF secondary market, UBS PR caused prices to decline, thereby harming class members.
On October 16, 2012, an Order on the Motion for Consolidation, Appointment as Lead Plaintiff, and Approval of Its Selection of Lead and Liaison Counsel was granted.
On November 5, 2012, the lead plaintiffs filed a Consolidated Amended Complaint against the defendants.
On January 17,2013, the lead plaintiffs filed a Second Consolidated Amended Complaint against the defendants.
On April 3, 2013, pursuant to Fed. R. Civ. P. 41(a)(1)(A)(i),a Notice of Voluntary Dismissal as to Codefendants Puerto Rico Investors Tax Free Fund IV and Puerto Rico Investors Bond Fund I dismissing without prejudice and without the imposition of any costs and attorneys’ fees, their claims against co-defendants The Puerto Rico Investors Tax Free Fund IV, Inc. and the Puerto Rico Investors Bond Fund I.
On August 27, 2013, the Motion to Restrict Viewing of Exhibits at Docket No. 67, filed by the defendants was granted. Plaintiffs’ Request for Oral Argument on the Opposition to Defendants’ Motion to Dismiss the Consolidated Amended Complaint ( docket entry 77 ) was DENIED.
On August 28, 2013, the Notice of Voluntary Dismissal to delete a name of a person who was not a named plaintiff in the case was granted. It was Ordered that partial judgment be entered dismissing all claims against the defendant included in the Consolidated Amended Complaint filed by Plaintiffs on January 17, 2013. The motions to dismiss filed by the codefendants on December 5, 2012, and on February 28, 2013, are moot.
On September 30, 2013, after the Court considered the allegations of the second Consolidated Amended Complaint the dismissal motion was denied.