Monday, 24 November 2014
Last updated 1 hour ago
Jul 27 2011 | 11:50am ET
A New York State appeals court has all but ended UBS' legal battle with Highland Capital Management over losses it suffered in a collateralized debt restructuring.
The court dismissed most of the bank's second lawsuit against the hedge fund, ruling that UBS' amended fraud complaints were covered by the dismissal of most its first lawsuit at the beginning of last year. UBS refiled the case last June, accusing Highland of fraudulently inducing it to restructure the CDO in 2008 by providing "false, incomplete and otherwise misleading" information.
But "UBS's claims against Highland in the original action and in this action all arise out of the restructured warehousing transaction. While the claim against Highland in the original action was based on Highland's alleged obligation to indemnify UBS for actions taken by the affiliated funds, and the claims against Highland in the second action arose out of Highland's alleged manipulation of those funds, they form a single factual grouping," the court ruled last week. "Both are related to the same business deal and to the diminution in the value of the securities placed with UBS as a result of that deal."
The appeals court did say that UBS would be permitted to sue Highland for breach of good faith and fraudulent conveyance, but only for "conduct alleged to have occurred after the commencement of the prior action" in early 2009.
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...