UBS Settles RMBS Claims Brought by the FHFA

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On September 4, Judge Mariana Pfaelzer of the U.S. District Court for the Central District of California entered an order dismissing with prejudice the Federal Housing Finance Agency’s claims against UBS Securities Inc. pursuant to a settlement agreement between the parties. The dismissal bars the remaining non-settling defendants (which include Bank of America, Citigroup and Deutsche Bank Securities, among others) from bringing claims for indemnity or contribution against UBS, and likewise bars UBS from bringing claims for indemnity or contribution against the remaining non-settling defendants. FHFA originally filed the action in the Supreme Court for the State of New York in 2011, alleging misstatements and omissions about loan quality in connection with RMBS purchased by Fannie Mae and Freddie Mac. The case was subsequently removed to federal court and consolidated into the FHFA multidistrict litigation before Judge Pfaelzer. Order.