Lawsuits against UBS over securities fraud dismissed

On Monday a putative class action lawsuits against UBS AG were dismissed by a U.S. District judge. The lawsuits were seeking damages over allegations of securities fraud in the auction rate securities market, reports Reuters.

The firs lawsuit was filed against UBS in March last year when the market froze and it was before the bank agreed to buy back the auction rate securities. As long as the plaintiffs were fully paid the purchase price the judge Lawrence McKenna in U.S. District Court in Manhattan said that they have no claims and that all the lawsuits will be dismissed.

Plaintiffs were left holding ARS that were illiquid. They paid $25,000 per share and have been paid back $25,000 per share plus interest or dividends on the securities. According to the acting regulation plaintiffs can plead within 20 days.