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.
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