US State Of Oregon Launches Lawsuit Against UBS

Tom Burroughes

2 April 2009

The US state of Oregon is suing UBS for losses sustained by the Oregon Public Employees’ Retirement Fund, media reports said.

Oregon State Treasurer Ben Westlund and Attorney General John Kroger announced yesterday that the state is seeking to recover more than $25 million from UBS.

The lawsuit, filed Tuesday in New York, seeks to make Oregon a co-lead plaintiff in an existing securities fraud class action case against UBS.

The lawsuit also alleges that Swiss Bank did not disclose its participation and exposure to the risk-laden US subprime mortgage markets, and fraudulently marketed debt instruments known as auction-rate securities.

Those decisions directly hurt Oregonians and the state’s public employee retirement fund, alleges the state.

“Oregonians and our state’s future have been harmed by these bad deeds, and it demands decisive action,” Mr Westlund said in a statement. “We will not stand idly by and allow Oregonians’ money to be vaporised by bad actors in international banks.”

UBS did not immediately reply to WealthBriefing’s enquiries on the matter.