UBS settles class action suit

John O'Brien May 3, 2010, 3:55pm


LANSING, Mich. (Legal Newsline) - Michigan's public pension fund is one of the shareholders that will benefit from a recent settlement reached by Swiss bank UBS.

The settlement will pay $117 million to investors of HealthSouth, a health care services provider. Cox says the Michigan Pension Fund was harmed by a fraud perpetrated by UBS, HealthSouth's investment banker.

UBS misrepresented HealthSouth's financial condition to the public, the class action lawsuit claimed.

"Retirees and pensioners lost millions of dollars in their hard-earned investments as a result of UBS's failure to present an honest financial picture to investors," Cox said.

"I will continue to stand up for defrauded Michigan pensioners and retirees and fight to recover every penny of their lost funds."

UBS is also paying $100 million to HealthSouth bondholders.

Cox alleges the State of Michigan Retirement Systems lost an estimated $33 million as a result of the scheme. Ernst & Young, HealthSouth's auditor, will also pay $33.5 million to bondholders.

The settlement must be approved by a federal judge.

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