A divided panel of the Appellate Division, First Department, yesterday reinstated a $2.9 million lawsuit filed by investment banking firm Morpheus Capital Advisors accusing UBS AG of breaking an agreement to pay Morpheus a fee for helping to sell its toxic assets following the financial crisis. The 3-1 decision in Morpheus Capital Advisors v. UBS, 650335/09, reversed a March 2011 order by Manhattan Supreme Court Justice Barbara Kapnick (See Profile) dismissing the case.
In 2008, UBS entered into an agreement with Morpheus where Morpheus would act as an investment banker and financial advisor to UBS for selling a portfolio of troubled student loan-related assets. The pact gave Morpheus the exclusive right to solicit counter-parties to buy the assets, and to be paid a fee for successfully arranging a deal.
