UBS Unit Can't Ditch Suit Over $308M MBS Insurance

Law360, New York (August 16, 2012, 1:01 PM EDT) -- A UBS AG subsidiary must face claims it gave credit rating agencies false information about mortgage-backed securities that later tanked, forcing Assured Guaranty Municipal Corp. to pay out $308 million in insurance claims to investors, a New York federal judge ruled Wednesday.

U.S. District Judge Harold Baer Jr. denied UBS Real Estate Securities Inc.’s motion to dismiss claims it procured AAA ratings for the securities by misleading Standard & Poor’s and Moody’s Investors Service Inc. about the underlying loans. Assured has paid a wave of claims...
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