London's High Court of Justice has rejected UBS's counterclaim against HSH Nordbank in relation to losses suffered on the North Street 2002-4 Collateralized Debt Obligations (CDOs). HSH Nordbank launched a $500mln claim against UBS in February this year, making the Swiss bank the first financial institution to be sued by an investor for an alleged 'mis-sale and mis-management' of financial products. On the same day, UBS filed a counterclaim against HSH Nordbank with the High Court of Justice in London.
London's High Court of Justice has rejected UBS's counterclaim against HSH Nordbank in relation to losses suffered on the North Street 2002-4 Collateralized Debt Obligations (CDOs). HSH Nordbank launched a $500mln claim against UBS in February this year, making the Swiss bank the first financial institution to be sued by an investor for an alleged 'mis-sale and mis-management' of financial products. On the same day, UBS filed a counterclaim against HSH Nordbank with the High Court of Justice in London.
'The decision confirms that UBS's actions were nothing more than a transparent attempt to confuse and delay the proceedings. In addition, Justice Walker’s decision to refuse UBS's request to appeal confirms that UBS's case is spurious and has no reasonable grounds for success,' said Rune Hoffmann of HSH Nordbank. 'HSH Nordbank is fully committed to pursuing this important legal action against UBS, which includes claims of breach of contract, fraud, breach of fiduciary duties and unjust enrichment.'
The German regional bank stated in February that it had incurred big losses on a $500mln investment in CDOs that were structured and sold by UBS. HSH claimed that its investment involved just a 30% exposure to the US property market, while UBS invested a far bigger share in the sub-prime market.
