UBS won dismissal of a U.S. pension fund’s lawsuit claiming it made misstatements and omissions in a $2.5bn offering of mortgage-backed securities in 2007.
Bloomberg reports that the Pension Trust Fund for Operating Engineers failed to sue Zurich-based UBS within the required one-year period after it should have begun investigating underwriting problems in home loans backing the securities, the U.S. Appeals Court in Philadelphia ruled today.
The Operating Engineers first sued in federal court in New Jersey on 22nd February, 2010. The pension fund should have investigated after a separate lawsuit was filed on 9th September 2008, in California state court against UBS Securities and Countrywide Financial alleging false and misleading statements in offerings, the appeals court said.
'A reasonably diligent plaintiff who had purchased mortgage-backed securities from UBS Securities based on loans that were largely originated by Countrywide would have noticed that complaint', the Third Circuit court ruled.
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