UBS Can't Shake Investor Group's MBS Suit

Law360, New York (October 1, 2012, 4:31 PM EDT) -- A Massachusetts federal judge refused Friday to nix a suit claiming UBS Americas Inc. subsidiaries sold more than $109 million worth of risky mortgage-backed securities by billing them as safe investments, saying an investor group had sufficiently alleged violations of state securities laws.

U.S. District Judge Denise J. Casper said that Capital Ventures International had adequately alleged that the offering materials of the securities issued by UBS Securities LLC contained misstatements and omissions regarding the underwriting guidelines of the pool of home loans packaged in the...
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