Detroit Pension Funds Sue UBS Over $40M Investment

Law360, New York (October 1, 2010, 7:48 PM EDT) -- Detroit's employee pension funds have lodged a suit alleging UBS AG defrauded them out of $40 million by duping them into investing in a high-risk collateralized loan obligation.

The General Retirement System of the City of Detroit and the Police and Fire Retirement System of the City of Detroit filed a complaint on Sept. 2 in Wayne County, Mich., Circuit Circuit, and it was removed Friday to the U.S. District Court for the Eastern District of Michigan.

In removing the case, Switzerland-based UBS and a subsidiary...
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