{"id":5844,"date":"2015-09-01T00:00:00","date_gmt":"2015-09-01T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2015\/09\/ubs_settles_pursuit_partners_c"},"modified":"2015-09-01T00:00:00","modified_gmt":"2015-09-01T05:00:00","slug":"ubs-settles-pursuit-partners-c","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/ubs-settles-pursuit-partners-c\/","title":{"rendered":"UBS Settles Pursuit Partners\u2019 CDO Lawsuit Over Asset-Backed Securities"},"content":{"rendered":"

UBS AG (UBS) <\/a>and Connecticut-based hedge fund Pursuit Partners have settled a securities fraud lawsuit accusing the brokerage firm of selling asset-backed securities without disclosing that they were going to be downgraded. The resolution was reached a day before trial was scheduled to start.<\/p>\n

Pursuit Partners claims that UBS sold it $40.5M of collateralized debt obligations<\/a> in 2007. The hedge fund contends that these were the same securities that UBS employees had called \u201ccrap\u201d and \u201cvomit\u201d in emails. The securities fraud case was filed in 2008, with Pursuit seeking $100M. <\/p>\n

According to the complaint, UBS purportedly failed to disclose to the Connecticut hedge funds that the firm had engaged in private conversations with employees of Moody\u2019s (MCO) in 2007 about how the credit rating agency did not believe the securities should be rated as investment grade. When Moody\u2019s downgraded them three months later the securities became practically worthless. The plaintiff contended that not only did it know the CDOs were about to become toxic securities but also they plotted to get rid of them by selling them to Pursuit.<\/p>\n

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

UBS AG (UBS) and Connecticut-based hedge fund Pursuit Partners have settled a securities fraud lawsuit accusing the brokerage firm of selling asset-backed securities without disclosing that they were going to be downgraded. The resolution was reached a day before trial was scheduled to start. Pursuit Partners claims that UBS sold it $40.5M of collateralized debt […]<\/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":[3742,3748,3755],"tags":[],"class_list":["post-5844","post","type-post","status-publish","format-standard","hentry","category-collateralized-debt-obligation","category-hedge-funds","category-ubs"],"yoast_head":"\nUBS Settles Pursuit Partners\u2019 CDO Lawsuit Over Asset-Backed Securities — Investor Lawyers Blog — September 1, 2015<\/title>\n<meta name=\"description\" content=\"UBS AG (UBS) and Connecticut-based hedge fund Pursuit Partners have settled a securities fraud lawsuit accusing the brokerage firm of selling asset-backed — September 1, 2015\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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