UBS Escapes ERISA Stock Drop Action

Law360, New York (March 28, 2011, 3:40 PM EDT) -- UBS AG won the dismissal of a putative class action in New York on Thursday asserting the company violated the Employee Retirement Income Security Act by continuing to offer an all-UBS stock retirement fund after it was no longer prudent.

Judge Richard J. Sullivan of the U.S. District Court for the Southern District of New York granted the defendants' motion to toss the suit alleging that UBS officers still recommended investing in the fund, which ultimately collapsed in the mortgage-backed securities meltdown, even after they knew...
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