UBS To Pay $4.4M To Settle ARS Fraud Claims

Law360, New York (July 31, 2008, 12:00 AM EDT) -- UBS AG has agreed to pay $4.4 million to settle allegations that it misled Massachusetts municipalities and government entities, which bought the investment bank's retail auction rate securities in order to finance public work projects, only to find their investments frozen.

In a consent judgment entered Wednesday in Suffolk Superior Court, the Swiss bank agreed to pay Massachusetts $1 million and reimburse $3.4 million to state communities that invested in auction rate securities, Massachusetts Attorney General Martha Coakley's office said.

The payment follows an agreement UBS...
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