Defendant Name:
UBS Securities LLC
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
UBS AG
SIC Code:
6021
CUSIP:
H8923133
Document Reference:
complaint_08-cv-10754
Document Details
Legal Case Name
SEC v. UBS Securities LLC and UBS Financial Services Inc.
Document Name
Complaint
Document Date
11-Dec-2008
Document Format
Civil Proceeding
Case Number
08-cv-10754
Federal District Court
New York, Southern District of New York
Allegation Type
Broker Dealer
Document Summary
In the Complaint, the SEC stated: "This is a case in which the Defendant misled tens of thousands of its customers regarding the fundamental nature and increasing risks associated with auction rate securities ('ARS') that UBS underwrote, marketed and sold. Through its financial advisers ('FAs'), sales personnel, and marketing materials, UBS misrepresented to customers that ARS were safe, highly liquid investments comparable to money market instruments. As a result, numerous customers invested in ARS funds they needed to have available on a short-term basis." In particular, the SEC alleged that: "On February 13, 2008, UBS determined that it would not continue to support auctions, as it had historically done, and that it would let its auctions fail. As a direct result of auction failures, over forty thousand UBS customer accounts holding more than $35 billion in auction rate securities had their investments rendered virtually illiquid overnight and, because of the illiquidity, many customers incurred market to market losses on the par value of their ARS investments held at UBS. Customers who did sell their securities in the secondary market had to do so at a loss."
Other Defendants in Action:
