1st Circ. Revives Shareholder Suit Over $757M UBS Deal

Law360, Los Angeles (January 7, 2013, 8:51 PM EST) -- The First Circuit on Friday revived a shareholder class action by Puerto Rico pension funds accusing UBS Trust Company of Puerto Rico of selling them $757 million in bad bonds to boost their price and generate illicit profits, saying a trial court erred in dismissing the suit in April 2011.

Friday’s opinion breathes new life into allegations that UBS Trust and the pension funds’ board of directors conspired to hide the risks involved in the funds’ acquisition of bonds from Puerto Rico’s troubled employee retirement system,...
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