Bloomberg News reports that UBS was accused of violating federal securities laws in underwriting and selling the securities to investors, who claimed that offering materials contained misleading information about Lehman Brothers’ financial condition.
'UBS is pleased to have resolved this legacy litigation matter arising out of the 2008 financial crisis,' the lender said in a statement. 'UBS agreed to the settlement to avoid the cost and uncertainty of continued litigation.'
The settlement, disclosed August 8 in a filing in federal court in New York, compares 'favourably' with other recoveries stemming from the credit crisis, the plaintiffs said. Lehman Brothers filed for bankruptcy in September 2008.
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