New York AG files complaint

Local Court News Posted on

New York Attorney General Andrew Cuomo filed a lawsuit against financial firm UBS on Thursday for allegedly misrepresenting so-called "auction rate securities" as low-risk despite the actual volatility of such investments. In the complaint, Cuomo alleges that UBS led investors to believe they could easily divest themselves of the long-term securities, and that after the company was aware of market instability, they continued to push the funds even though top executives had moved quickly to sell their own holdings. During a press conference on the lawsuit, Coumo said:

   Not only is UBS guilty of committing a flagrant breach of trust between the bank and its customers, its top executives jumped ship as soon the securities market started to collapse, leaving thousands of customers holding the bag. Today we bring the first nationwide lawsuit against UBS, seeking to recover billions of dollars for customers and sending a resounding message to the rest of the industry that this type of deceptive behavior will not be tolerated.

Cuomo is seeking to force UBS to buy back the securities from investors and to pay restitution for any profits made from their sale, as well as other damages.

On Wednesday, the Texas Securities Board said it is considering banning UBS from selling securities in the state because of auction rate securities misrepresentations. A March New York Times report said the practice of representing the securities as low-risk and highly liquid was widespread and has resulted in large loses and a number of lawsuits around the country.

Legal News Media

Legal News is the top headline legal news provider for lawyers and legalprofessionals. Read law articles and breaking news from law firm's across the United States to get the latest updates. We reserve the right, at our discretion, to change, modify, add, or remove portions of the site at any time. Your This site is solely for your personal use. You are, of course, welcome to print or otherwise copy material from this site for your personal use. However, you may not distribute, exchange, modify, sell or transmit anything you copy from this Site, including but not limited to any text, images, audio and video, for any business, commercial or public purpose. Any unauthorized use of the text, images, audio and video may violate copyright laws, trademark laws, the laws of privacy and publicity and civil and criminal statutes.

 

American Bar Association – Start and Run a Law Firm

NewYorkStateBar.com – Starting a Law Firm

CPA Website Designs