UBS To Buy Back $1.5B In ARS To Settle NJ Claims

Law360, New York (February 8, 2011, 7:28 PM EST) -- Two UBS AG subsidiaries will repurchase $1.5 billion in auction rate securities sold to New Jersey clients and pay a $3.79 million fine to settle allegations that their securities dealers sold ARS without disclosing known market risks.

In a consent decree signed Monday, UBS Securities LLC and UBS Financial Services Inc. agreed to repurchase the securities and pay the civil penalties to New Jersey, according to the securities division of the state attorney general's office.

Although the companies marketed and sold the securities as safe, liquid...
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