Highland Seeks End To UBS Lawsuit Over CDO

Jan 19 2012 | 1:44am ET

Highland Capital Management has asked a court to dismiss—for the third time—a lawsuit filed against it by UBS.

The Swiss bank in September sued Highland Crusader Holdings in Manhattan state court, alleging that the hedge fund "fraudulently induced" it to restructure a collateralized debt obligation in 2008. UBS asked for more than $686 million in damages. The allegations of fraudulent conveyance and tortious interference were the only claims that a New York appeals court allowed UBS when it dismissed most of the bank's second lawsuit in July.

But, according to Highland, the latest lawsuit is no more than "rote regurgitation" of claims previously made and dismissed. The hedge fund called UBS's suit "yet another fatally flawed attempt to impose contractual liability on a Highland Capital Management LP managing third-party based on flimsy allegations and dismissed claims."

Highland asked the court to junk UBS's latest litigation.

UBS has accused Highland of providing "false, incomplete and otherwise misleading" information" in the restructuring of the CDO. The bank's first lawsuit was dismissed in early 2010.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.