German Bank Can't Blame UBS In $500M CDO Suit, Court Says

Law360, New York (March 27, 2012, 7:04 PM EDT) -- German bank HSH Nordbank AG cannot bring fraud claims against UBS AG over a doomed $500 million mortgage-backed securities deal, a New York state appeals court said Tuesday, reversing a lower court ruling against the Swiss banking giant.

A five-judge panel nixed the fraud claim and affirmed an October 2009 ruling dismissing claims for negligent misrepresentation and punitive damages. The suit arose from HSH’s agreement in 2002 to assume the risk for the first half-billion dollars of losses on a $3 billion portfolio of securities tied to the...
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