|
Search
Search through the thousands of lawsuits, complaints and recalls on our site.
 |
Case ID: 5069 | Stocks | 07/17/2008
According to a press release dated March 21, 2008, a class action lawsuit was filed on behalf of persons who purchased Auction Rate Securities from UBS, UBS Securities and UBS Financial Services during the Class Period and who continued to hold such securities as of February 13, 2008.
Specifically, the Complaint alleges that UBS violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by deceiving investors about the investment characteristics of auction rate securities and the auction market in which these securities traded. Auction rate securities are either municipal or corporate debt securities or preferred stocks which pay interest at rates set at periodic "auctions." Auction rate securities generally have long-term maturities or no maturity dates. The Complaint alleges that, pursuant to uniform sales materials and top-down management directives, UBS offered and sold auction rate securities to the public as highly liquid cash-management vehicles and as suitable alternatives to money market mutual funds. According to the Complaint, holders of auction rate securities sold by UBS and other broker-dealers have been unable to liquidate their positions in these securities following the decision on February 13, 2008 of all major broker-dealers including UBS to "withdraw their support" for the periodic auctions at which the interest rates paid on auction rates securities are set. The Complaint alleges that UBS failed to disclose the following material facts about the auction rate securities it sold to the class: (1) the auction rate securities were not cash alternatives, like money market funds, but were instead, complex, long-term financial instruments with 30 year maturity dates, or longer; (2) the auction rate securities were only liquid at the time of sale because UBS and other broker-dealers were artificially supporting and manipulating the auction rate market to maintain the appearance of liquidity and stability; (3) UBS and other broker-dealers routinely intervened in auctions for their own benefit, to set rates and prevent all-hold auctions and failed auctions; and (4) UBS continued to market auction rate securities as liquid investments after it had determined that it and other broker dealers were likely to withdraw their support for the periodic auctions and that a "freeze" of the market for auction rate securities would result.
At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Stocks Cases of Interest A class action has been filed in the Southern District Court of New York against Jakks Pacific, Inc. (NYSE: JAKK), a California based toy company and certain of its officers and directors by stockholders who purchased the company's common stock between October 26, 1999 and October 19, 2004. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. Several class actions have been filed against entertainment broadcaster the Walt Disney Company (NYSE: DIS) and certain of its officers and directors by stockholders who sold the company's common stock on February 9, 2004, or February 10, 2004. The actions claim that the defendants violated federal securities laws by failing to disclose that Comcast Corporation’s CEO had approached Disney with an offer to merge Disney and Comcast. If a company goes bankrupt after misusing its investors, the damaged security holders often go after anyone who assisted the bankrupt company. A class action has been filed against funding trustees Northwestern Trust and Investors Advisory Company and U.S. Bank, NA, by all persons who purchased securities in the form of promissory notes issued by Partners Mortgage Corporation (PMC) between November 7, 1997, and September 1, 2003. The action alleges that the trustees violated Washington-state securities laws by breaching their fiduciary duties to investors and allowing Partners to violate its own contracts. A class action has been filed against Watson Pharmaceuticals Inc. (NYSE: WPI) and certain of its officers and directors by stockholders who purchased the company's common stock between November 2, 1999, and November 13, 2001. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. A class action has been filed against Abatix Corporation, a supplier of safety, construction, restoration, and homeland security products, (NASDAQ: ABIX) and certain of its officers and directors by stockholders who purchased the company's common stock between 4/14/04 to 4/16/04. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. A class action has been filed against IAC/Interactive, a company which acts as intermediary between suppliers and consumers, aggregating large blocks of consumer goods and services (primarily travel-related products such as hotel rooms and airline tickets) from suppliers and selling them to consumers over the Internet (NASDAQ: IACI) and certain of its officers and directors by stockholders who purchased the company’s common stock between March 19, 2003 and August 4, 2004. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company’s securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. |
|
© 2000 - 2008 Copyright. All rights reserved nola3, llc.
