Court revives CDO case against UBS

Gavel

A New York state appeals court on Tuesday revived a lawsuit accusing UBS of fraudulently causing $331m of losses from collateralised debt obligations issued before the financial crisis.

Reuters reports that Loreley Financing, a group of special-purposes entities based in Jersey in the Channel Islands, brought the lawsuit in 2012 over four CDOs arranged by UBS. The CDOs were comprised of residential mortgage-backed securities and credit default swaps.

When the housing market crashed, Loreley suffered huge losses and claimed UBS had misrepresented the CDOs, which it bought in 2006 and 2007.

To access the complete Reuters article hit the link below:

Appeals court revives U.S. case against UBS over CDO fraud

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