UBS Hits Highland Capital With $686M Fraud Suit

Law360, New York (June 29, 2010, 6:49 PM EDT) -- UBS AG has launched a $686 million lawsuit against Highland Capital Management LP accusing the hedge fund of duping it into restructuring an $86 million debt securities agreement, then stripping away assets and making payment to the bank impossible.

The Swiss bank's partially redacted complaint, lodged Monday in the Supreme Court of the State of New York, County of New York, also seeks punitive damages on top of the $686 million.

According to the complaint, once Highland Capital succeeded in misleading UBS into restructuring an original...
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