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

Dillon Eustace: The Advantages of ICAVs

Feb 11 2016 | 7:51pm ET

As the growth of alternative investment vehicles continues, global asset managers...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedging Against Reputational Risk in the 21st Century

Feb 12 2016 | 7:18pm ET

For investors, the first step in researching a new fund or manager is to google...