Tuesday, 24 May 2016
Last updated 46 min ago
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.