{"id":5382,"date":"2013-01-04T00:00:00","date_gmt":"2013-01-04T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2013\/01\/pension_plans_shareholder_deri"},"modified":"2022-04-28T15:44:01","modified_gmt":"2022-04-28T20:44:01","slug":"pension-plans-shareholder-deri","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/pension-plans-shareholder-deri\/","title":{"rendered":"Pension Plans\u2019 Shareholder Derivative Claims Against UBS is Reinstated by 1st Circuit Appeals Court"},"content":{"rendered":"

The U.S. Court of Appeals for the First Circuit has reinstated the shareholder derivative claims<\/a> filed by two Puerto Rican pension funds against UBS Financial Services Inc. (UBS) <\/a>Judge Kermit Lepez said that following de novo review\u2014a district court had dismissed the case on the grounds that a failure to properly plead demand futility was subject to such an examination\u2014it seemed to him that the plaintiffs\u2019 allegations sufficiently show reasonable doubt about six fund directors\u2019 ability to assess the former\u2019s demand to bring this action with the independence and disinterest mandated by Puerto Rican law.<\/p>\n

The two pension funds are the owners of shares in closed-end funds that made investments, which were not successful, through UBS entities. Their investment adviser and fund administrator is UBS Trust, which is a UBS Financial affiliate.<\/p>\n

According to the court, UBS Financial, which has been Puerto Rico\u2019s Employee Retirement System (ERS) financial adviser for more than five years, underwrote $2.9B of ERS-issued bonds. Meantime, the UBS Trust bought approximately $1.5B of the ERS bonds and then sold them to funds. At issue is about $757M in bonds that the two Puerto Rican funds purchased.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The U.S. Court of Appeals for the First Circuit has reinstated the shareholder derivative claims filed by two Puerto Rican pension funds against UBS Financial Services Inc. (UBS) Judge Kermit Lepez said that following de novo review\u2014a district court had dismissed the case on the grounds that a failure to properly plead demand futility was […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3959,3752,4007,3755],"tags":[],"class_list":["post-5382","post","type-post","status-publish","format-standard","hentry","category-derivatives","category-financial-firms","category-shareholder-lawsuits","category-ubs"],"yoast_head":"\nPension Plans\u2019 Shareholder Derivative Claims Against UBS is Reinstated by 1st Circuit Appeals Court — Investor Lawyers Blog — January 4, 2013<\/title>\n<meta name=\"description\" content=\"The U.S. Court of Appeals for the First Circuit has reinstated the shareholder derivative claims filed by two Puerto Rican pension funds against UBS — January 4, 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