2nd Circ. Spares UBS From $40M Arbitration Claim

Law360, New York (January 5, 2011, 1:20 PM EST) -- The Second Circuit has ruled that Swiss investors cannot force UBS Securities LLC to arbitrate $40 million in claims over lockup agreements and failed investments doomed by the HealthSouth Corp. fraud.

On Tuesday, the U.S. Court of Appeals for the Second Circuit affirmed the lower court’s grant of declaratory judgment to UBS, upholding a permanent injunction barring the investors from pursuing their fraud claims in a Financial Industry Regulatory Authority arbitration proceeding.

“The district court correctly concluded that the Swiss investors were not customers of UBS,...
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