HSH Nordbank, UBS Settle Influential $500M CDO Suit

Law360, New York (March 11, 2013, 4:25 PM EDT) -- HSH Nordbank AG and UBS AG settled their $500 million lawsuit over a soured mortgage-backed securities deal Friday, after a New York state appeals court put the kibosh on the German bank's fraud claims in a decision often cited in similar securities lawsuits. 

Attorneys involved in the case declined to comment Monday, and terms of the settlement are confidential.

HSH Nordbank had alleged that it lost $500 million because UBS had schemed to stuff a complicated collateralized debt obligation with low-quality debt, dooming the securities to...
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