UBS fails in US-Courts
The New York State Supreme Court sustained HSH Nordbank’s claims against UBS
Hamburg/Kiel, October 31, 2008 - The New York State Supreme Court rejected UBS’s motion to dismiss the case relating to USD 500 million of “North Street 2002-4” CDOs which UBS sold to HSH in 2002. With it the New York State Supreme Court allowed the case filed by HSH Nordbank against UBS.
The decision allows HSH Nordbank to pursue claims for breach of contract and breach of the implied covenant of good faith and fair dealing both as to the initial mis-selling of the investment and as to UBS' improper management of it, throughout the period from 2002 until today.
While the court also dismissed fraud and certain other claims asserted in the complaint, in part because they were duplicative with the contract claim, its decision leaves intact the possibility of HSH Nordbank recovering its entire loss of up to USD 500 million in respect of this transaction.
“We continue to be fully committed to pursuing this legal action and, through our continuing investigations, we are even more confident of the strengths and merits of our case" said HSH Nordbank head of legal department, Dr. Wolfgang Goessmann.
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