Purchasers of Mutual Funds v UBS-AG
UBS-AG Faces Class Action Lawsuit
A class action has been filed on behalf of customers of UBS-AG against the broker/dealer, alleging that it failed to disclose that is was engaged in a scheme to "aggressively push UBS sales personnel to steer clients into purchasing" UBS Funds.
The purchases allegedly included offerings in several mutual fund families, and provided financial incentives and rewards to staff, thus creating "an insurmountable conflict of interest."
The suit, filed in U.S. District Court for the Southern District of New York, also charged that UBS unit UBS Global Asset Management did not disclose revenue-sharing agreements, and that the investment advisers charged "excessive and improper" fees for the arrangements, money that should have been invested in the underlying portfolio of mutual funds.
