Statement of Financial Condition
UBS Securities LLC
Notes to the Statement of Financial Condition (continued)
(In Thousands)
14. Commitments and Contingencies (continued)
Legal Proceedings (continued)
In November 2018, the DOJ filed a civil complaint in the U.S. District Court for the Eastern
District of New York. The complaint seeks unspecified civil monetary penalties under the
Financial Institutions Reform, Recovery and Enforcement Act of 1989 related to UBS's issuance,
underwriting and sale of 40 residential mortgage-backed securities transactions in 2006 and 2007.
The Parent and the Company moved to dismiss the civil complaint on February 6, 2019. On
December 10, 2019 the district court denied the motion to dismiss.
Government Bonds. Putative class actions have been filed since 2015 in US federal courts against
the Company, the Parent and other banks on behalf of persons who participated in markets for US
Treasury securities since 2007. A consolidated complaint was filed in 2017 in the US District Court
for the Southern District of New York alleging that the banks, including the Company, colluded
with respect to, and manipulated prices of, US Treasury securities sold at auction and in the
secondary market and asserting claims under the antitrust laws and for unjust enrichment.
Defendants' motions to dismiss the consolidated complaint was granted on March 31, 2021.
Plaintiffs have filed an amended complaint, which Defendants have moved to dismiss. Similar
class actions have been filed concerning European government bonds.
Interest Rate Swaps and Credit Default Swap matters. In 2016, putative class action plaintiffs filed
consolidated amended complaints in the Southern District of New York against numerous financial
institutions and others, including the Company and the Parent, alleging violations of the US
Sherman Antitrust Act and common law. Plaintiffs allege that the defendants unlawfully conspired
to restrain competition in the market for Interest Rate Swap ("IRS") trading.
Plaintiffs assert claims on behalf of all purchasers and sellers of IRS that transacted directly with
any of the dealer defendants since January 1, 2008, and seek unspecified trebled compensatory
damages and other relief. The operators of two swap execution facilities ("SEFs") filed complaints
raising similar allegations. In July 2017, the court granted in part and denied in part defendants'
motions to dismiss, limiting the claims to the time period 2013-2016, and dismissing certain state-
law claims and claims against certain other defendants. In March 2019, the court denied in part
and granted in part class plaintiffs' motion for leave to file a fourth amended complaint, rejecting
plaintiffs' request to add allegations covering the time period 2008-2012 but allowing plaintiffs to
add allegations relating to the time period 2013-2016 (the time period covered by the operative
comp A third SEF filed a complaint in June 2018 and an amended complaint in August 2018
alleging conduct similar to the conduct alleged by the other SEF plaintiffs but continuing into
2018. Defendants have moved to dismiss the third SEF's amended complaint, and in November
2018 the court granted the motion in part and denied it in part, dismissing certain state-law claims
but permitting certain federal and state claims relating to the time period 2013-2018. In June 2017,
one of the SEF plaintiffs filed a complaint raising allegations similar to those in the IRS litigation
with respect to the trading of credit default swaps.
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