UBS agrees to settle hedge fund's lawsuit over asset-backed securities

UBS agrees to settle hedge fund's lawsuit over asset-backed securities
Pursuit Partners sued the wirehouse in 2008, accusing it of selling it $40.5 million of collateralized debt obligations that some of the bank's employees referred to as “vomit” and “crap” in e-mails.
SEP 01, 2015
UBS AG avoided a trial with an agreement to settle a lawsuit in which it was accused of peddling “crap” securities during the 2007 financial crisis. A trial was scheduled to start Wednesday on Connecticut hedge fund Pursuit Partners' claim that UBS sold it asset-backed securities without disclosing they were about to be downgraded. Attorneys for UBS and the Stamford-based hedge fund announced in open court Tuesday that they had reached an agreement to resolve the lawsuit, said Rhonda Hebert, a spokeswoman for the Connecticut state court system. Jury selection will be postponed while the parties work out the details, Ms. Hebert said. Pursuit Partners sued UBS in 2008, accusing it of selling it $40.5 million of collateralized debt obligations (CDOs) from July 2007 to October 2007, which some of the bank's employees referred to as “vomit” and “crap” in e-mails. Terms of the agreement weren't immediately available and the settlement couldn't be verified in court records. Attorneys for UBS and Pursuit Partners didn't immediately respond to telephone and e-mail messages seeking comment on the settlement. Gregg Rosenberg, a spokesman for UBS, declined to comment. The settlement was first reported by Business Insider. The case is Pursuit Partners LLC v. UBS AG, UWY-CV-08-40331-48-S, Connecticut Superior Court (Waterbury).

Latest News

SEC to lose Hester Peirce, deepening a commissioner crisis
SEC to lose Hester Peirce, deepening a commissioner crisis

The "Crypto Mom" departure would leave the SEC commission with just two members and no Democratic commissioners on the panel.

Florida B-D, RIA owner pitches bold long-term plan to sell to advisors
Florida B-D, RIA owner pitches bold long-term plan to sell to advisors

IFP Securities’ owner, Bill Hamm, has a long-term plan for the firm and its 279 financial advisors.

Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships
Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships

Meanwhile, a Osaic and Envestnet ink a new adaptive wealthtech partnership to better support the firm's 10,000-plus advisors, and RIA-focused VastAdvisor unveils native integrations with leading CRMs.

Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions
Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions

A former Alabama investment advisor and ex-Kestra rep has been permanently barred and penalized after clients he promised to protect got caught in a $2.6 million fraud.

Why the evolution of ETFs is changing the due diligence equation
Why the evolution of ETFs is changing the due diligence equation

As more active strategies get packaged into the ETF wrapper, advisors and investors have to look beyond expense ratios as the benchmark for value.

SPONSORED Are hedge funds the missing ingredient?

Wellington explores how multi strategy hedge funds may enhance diversification

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management