In one of the first actions against bond rating agencies and banks over the so-called toxic debt instruments that helped trigger the economic meltdown, a Stamford, Conn., hedge fund has won a $35.5 million prejudgment lien against UBS Securities and UBS AG.

Stamford Superior Court Judge John F. Blawie ordered the international investment giant to post the funds in advance of litigation, stating that the hedge fund established probable cause that UBS sold the debt instruments even though it had inside information that major credit rating agencies were just about to downgrade them.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]