UBS Client Sues Over $109M In 'Toxic' MBS

Law360, New York (November 2, 2011, 1:32 PM EDT) -- Investor group Capital Ventures International sued several UBS Americas Inc. subsidiaries in Massachusetts federal court on Tuesday, saying the companies sold it more than $109 million worth of risky mortgage-backed securities by billing them as safe investments.

In its complaint, Capital Ventures accuses UBS Securities LLC and UBS Real Estate Securities of packaging the securities with pools of toxic home loans and marketing them as sound investments. UBS made numerous misstatements and omissions in order to convince investors to buy the bound-to-fail products, the complaint says....
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