UBS/Union Central, Allstate and Merrill Lynch Announce Settlements to Residential MBS Lawsuits
April 25, 2014
UBS AG and Union Central Life Insurance Co. this week announced they have settled their legal dispute regarding the sale of residential MBS that UBS sold to the insurer in the years leading up to the financial crisis. The settlement reached in early March but jointly announced just this week, ends the legal action begun in a New York federal court in 2011. Union Central and affiliates Ameritas Life Insurance Corp. and Acacia Life Insurance Co. sued UBS and other financial service companies and executives in 2011, alleging that the defendants misrepresented the quality of the loans underlying the residential MBS that they sold to the insurers. In a 2012 amended complaint, Union Central alleged...