UBS to pay US$120m in settlement over Lehman notes

MANHATTAN - UBS AG has agreed to pay US$120 million (S$151.3 million) to settle a lawsuit by investors who accused the Swiss bank of misleading them about the financial condition of Lehman Brothers Holdings Inc in connection with the sale of structured notes.

The preliminary settlement was disclosed in papers filed late Thursday in the US District Court in Manhattan, and requires court approval.

It resolves claims over close to US$1 billion of Lehman structured notes that UBS sold between March 2007 and September 2008. Lehman filed for bankruptcy protection on Sept 15, 2008