UBS Pays $358M To Settle Assured's RMBS Suit

Law360, New York (May 6, 2013, 2:23 PM EDT) -- UBS AG has agreed to pay $358 million to Assured Guaranty Ltd. in an agreement that settles a lawsuit claiming that UBS falsely overstated the quality of mortgage loans underlying residential mortgage-backed securities, Assured announced Monday.

In a complaint filed in February 2012, Assured accused UBS of hiding the risk of the securities, which were sold to investors in 2006 and 2007 but tanked in the 2008 housing crisis. Under the agreement disclosed Monday, UBS will partially pay for past losses with a $358 million cash...
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