UBS AG won a judge’s preliminary approval of its $120 million settlement of claims by investors in Lehman Brothers Holdings Inc. securities in a lawsuit tied to the investment bank’s 2008 collapse.
UBS, Switzerland’s largest bank, agreed in August to settle allegations that it violated federal securities laws in underwriting and selling the securities to investors, who claimed that offering materials contained misleading information about Lehman Brothers’ financial condition.
U.S. District Judge Lewis Kaplan in New York yesterday granted provisional approval to the accord and certified the settlement class to include those who purchased securities issued by Lehman and sold by UBS’s Financial Services unit in 2007 and 2008. He said a settlement fund of $120 million, before deductions of attorneys’ fees, expenses and costs, will be distributed to certain investors who bought or acquired the securities.
The judge scheduled a fairness hearing for Dec. 10 and said he will retain jurisdiction over the case. Lehman filed for bankruptcy in September 2008.
The case is In re Lehman Brothers Securities and Erisa Litigation, 09-md-02017, U.S. District Court, Southern District of New York (Manhattan).