Attorney General announces $90.8 million multistate settlement with UBS to resolve bid-rigging allegations

DENVER — Colorado Attorney General John Suthers announced today a $90.8 million multistate settlement with UBS to settle allegations that the multinational bank engaged in anticompetitive conduct in the municipal bond derivatives industry. The settlement is one component of a coordinated law enforcement and regulatory action involving the U.S. Department of Justice, the Securities and Exchange Commission, and the Internal Revenue Service.

As a part of the settlement, UBS has agreed to pay $63.3 million that will be used to reimburse certain government and not-for-profit organizations across the United States who were injured as a result of the allegedly anticompetitive conduct. UBS has also agreed to pay a $2.5 million civil penalty and $5 million to reimburse the states for fees and costs incurred during the investigation. A separate settlement announced today between UBS and the Securities and Exchange Commission will result in an additional payment of $20 million to certain other government and non-for-profit organizations.

The ongoing multistate investigation has revealed allegedly collusive and deceptive conduct by individuals at several financial institutions. The conduct included bid rigging, agreements to refrain from bidding, and fraud. Ultimately the conduct resulted in lower yields, lower rates of return, or less favorable terms for government and not-for-profit organizations.



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