Client Affairs

UBS Agrees To Settle Structured Products Case, To Pay SFr110.5 Million

Tom Burroughes Group Editor London 12 August 2013

UBS Agrees To Settle Structured Products Case, To Pay SFr110.5 Million

UBS has agreed to pay SFr110.5 million ($119.9 million) to settle complaints of investors who had sued the bank in a mis-selling case of Lehman Brothers structured products, according to Tribune de Genève, the Swiss publication.

Lehman Brothers, a prominent producer of structured products, went bankrupt in September 2008. The face value of these products collapsed.

"UBS is pleased to have resolved this legacy litigation matter arising out of the 2008 financial crisis. UBS agreed to the settlement to avoid the cost and uncertainty of continued litigation. The full cost of the settlement is covered by litigation provisions established by UBS in 2012 and in prior periods," the Zurich-listed bank told WealthBriefing.

"This mutual agreement in the framework of a complaint partnership focuses on structured securities that were issued by Lehman Brothers and underwritten and sold by UBS between 2007 and 2008," according to the text of the agreement, the Swiss newspaper said.

"The agreement ends a complaint in which investors accuse UBS of selling their structured products through disclosure documents that were false and misleading," it added.

The agreement must still be approved by a New York court.

 

 

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