UBS Sues Highland Over CDO, Again

Jun 30 2010 | 1:50pm ET

As regulators and others rush to the courthouse to sue and be sued over collateralized debt obligations, UBS is back, refilling its lawsuit against hedge fund Highland Capital Management.

UBS’ move comes almost five months after a New York state court  dismissed one of three claims against Highland in a lawsuit filed last February. The appeals court dropped the allegation that the hedge fund had a duty to indemnify the bank against losses suffered in a CDO restructuring two years ago.

UBS alleges that Highland “fraudulently induced” it to restructure the CDO, providing “false, incomplete and otherwise misleading” information.

“We are disappointed that UBS has chosen to refile its baseless lawsuit against Highland Capital and the funds given the court’s previous dismissal of the suit’s central claim,” Highland spokeswoman Nina Devlin said.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Future of Private Equity: New Opportunities, New Challenges

Feb 3 2017 | 6:41pm ET

The private equity industry’s astonishing rebound since the financial crisis has...

 

From the current issue of