NEW YORK, March 31, 2008 (PRIME NEWSWIRE) -- Levi & Korsinsky, LLP (www.zlk.com) announced that it had filed a class action lawsuit on behalf of all those who purchased Auction Rate Securities from UBS AG (NYSE:UBS) between March 21, 2003 and February 13, 2008, inclusive (the "Class" or "Class Period"), and who continued to hold such securities as of February 13, 2008 to recover damages caused by UBS AG's ("UBS") violation of the federal securities laws. A copy of the Complaint is available at www.zlk.com. The class action is pending in the United States District Court for the Southern District of New York.
The Complaint alleges that UBS violated the securities laws by deceiving investors about the investment characteristics of Auction Rate Securities and the auction market in which these securities traded. Auction Rate Securities are either municipal or corporate debt securities or preferred stocks which pay interest at rates set at periodic "auctions." Auction Rate Securities generally have long-term maturities or no maturity dates.
On March 28, 2008 UBS announced that it is cutting the value of auction-rate securities in its brokerage customers' accounts, which is a confirmation that problems with the securities have eroded the principal holdings of investors. Until now, customers who were unable to sell securities in regularly scheduled auctions were told that the securities retained full value and would receive higher interest rates. UBS, however, will be using an internal model to value and mark-down securities. The markdowns range from a few percentage points to more than 20 percent and as of March 31, 2008, UBS has began marking them down.
If you purchased or otherwise acquired auction rate securities from UBS between March 21, 2003 and February 13, 2008, and continue to hold such securities, you may, no later than May 20, 2008, request that the Court appoint you as a named plaintiff in this lawsuit. Your ability to share in any recovery is not affected by the decision whether or not to serve as a named plaintiff. You may retain Levi & Korsinsky, LLP, or other attorneys, to serve as your counsel in this action.
Individuals and institutions that purchased Auction Rate Securities from UBS may have legal rights to recover for any damages incurred. Information about Auction Rate Securities is available at www.auctionratehelp.com
For further information concerning your legal rights, please contact Eduard Korsinsky, Esq. or Juan E. Monteverde, Esq. of Levi & Korsinsky, LLP at 212-363-7500 or via e-mail at info@zlk.com
Levi & Korsinsky, LLP has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud. Levi & Korsinsky, LLP represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca.