UBS Units Hit Ace With $10M Suit Over Investigation Costs

Law360, New York (August 4, 2011, 3:01 PM EDT) -- Several Puerto Rican affiliates of UBS AG slapped Ace Insurance Group with a $10 million lawsuit in New York state court Wednesday, seeking coverage of expenses racked up during federal investigations into pension bonds that UBS both underwrote and bought.

The lawsuit, brought by UBS Financial Services of Puerto Rico, UBS Trust Co. of Puerto Rico and multiple UBS funds in Puerto Rico, stems from claims surrounding allegedly low-quality pension bonds that the Puerto Rican government's Employment Retirement System sold.

UBS Financial raked in about $27...
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