UBS Warburg, a Swiss-based investment firm, recently agreed to pay $80 million as part of a settlement with the Attorney General of the State of New York. In 2002, UBS Warburg was named in a class action lawsuit
that accused the firm of inflating the value of Enron Corporation's stock even though analysts knew the company was headed for disaster.
Warburg, a sister company to Paine Webber, Inc., also allegedly encouraged Enron employees to invest their 401(k) contributions in Enron
. Many workers lost all of their retirement savings when the stock plummeted. The lawsuit claimed Warburg was responsible for warning investors of Enron's pending downfall and that analysts should never have rated the stock as a strong buy.
Securities that UBS Warburg analysts may have misrepresented include the following:
If you have been victimized by securities fraud because of a UBS Warburg analyst, it may be important to contact an attorney
who can help you protect your legal rights. Please keep in mind that there may be time limits
within which you must commence suit.
- Securities & Investment Fraud