Investors’ Suit Against UBS Is Dismissed

Investors’ Suit Against UBS Is Dismissed - 3/31/2009

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2009 News and Press Releases

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HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

DISMISSAL NEWS:

Investors’ Suit Against UBS Is Dismissed
Lynnley Browning

The New York Times. March 31, 2009
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A federal judge dismissed on Monday a closely watched lawsuit brought against UBS, the Swiss bank, by individual investors who said it had misled them when it sold them auction rate securities. The judge, Lawrence M. McKenna of United States District Court in Manhattan, ruled that the investors were not entitled to continue their litigation because UBS had reached a $19.4 billion settlement in the matter in August with the Securities and Exchange Commission and regulators in several states. The bank agreed to buy back nearly that amount of securities as well as pay a fine. The investors, who filed their complaint in March 2008, asserted, as did federal and state regulators in their own lawsuit, that UBS had known that the market for the securities was collapsing amid the financial crisis. UBS, the investors said, nonetheless promoted the securities widely and aggressively to individual investors at artificially inflated prices. The securities had previously been regarded as safe and as liquid as cash, but the collapse of the market for them left investors losing money and with holdings tied up indefinitely. The dismissal could mean that similar lawsuits against other banks might also be dismissed.

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