A federal judge in Puerto Rico denied class certification in a proposed securities class action accusing UBS Group AG’s Puerto Rico unit of artificially inflating the price of shares in so-called closed-end companies, while hiding the risks of an imbalanced market from its investors.
According to court documents, the proposed class would have included anyone who bought the funds from UBS Financial Services of Puerto Rico between January 2008 and September 2013. A magistrate judge in March recommended that Judge Carmen Consuelo Cerezo deny certification because the case raised individualized issues of reliance that predominated over common ones.
The prospective class, Bruce J. McGiverin said in an 18-page report, had bought the shares through 145 financial advisors who worked as brokers for 23 different funds. The pitches were highly individualized, and the information available to each plaintiff varied, the report read.
On the whole, McGiverin said, the complaint, filed by SDM Holdings Inc., failed to establish the presumption of reliance necessary to proceed as a class action on claims of securities fraud.
To Read More >>> Judge Denies Class Action in UBS Puerto Rico Securities Case