Latham & Watkins secured a $1 billion judgment Wednesday on behalf of UBS Securities in a long-running contract dispute involving bankrupt hedge fund manager Highland Capital Management, which dates back to the early days of the financial crisis.

In a 40-page decision made public late Wednesday afternoon, Manhattan Supreme Court Justice Marcy Friedman ordered two funds formerly affiliated with Dallas-based Highland to pay $520 million in damages and another $520 million in statutory interest resulting from their refusal to cover UBS’s losses under a failed agreement to securitize collateralized loan obligations and credit-default swaps in 2008.

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