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

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...