SOURCE: Stull, Stull & Brody

September 19, 2005 20:03 ET

Stull, Stull & Brody Announces Class Action Against UBS-AG on Behalf of Purchasers of UBS Mutual Funds

NEW YORK, NY -- (MARKET WIRE) -- September 19, 2005 -- Notice is hereby given that a class action lawsuit was filed on July 29, 2005 in the United States District Court for the Southern District of New York against UBS-AG (NYSE: UBS) and its affiliated entities ("UBS"), on behalf of those who purchased UBS mutual funds from UBS between May 1, 2000 and April 30, 2005, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act").

The UBS mutual funds and their respective trading symbols are as follows:

UBS Absolute Return Bond A              (NASDAQ: BNRAX)
UBS Absolute Return Bond C              (NASDAQ: BNRCX)
UBS Absolute Return Bond Y              (NASDAQ: BNRYX)
UBS Dynamic Alpha A                     (NASDAQ: BNAAX)
UBS Dynamic Alpha B                     (NASDAQ: BNABX)
UBS Dynamic Alpha C                     (NASDAQ: BNACX)
UBS Dynamic Alpha Y                     (NASDAQ: BNAYX)
UBS Global Allocation A                 (NASDAQ: BNGLX)
UBS Global Allocation B                 (NASDAQ: BNPBX)
UBS Global Allocation C                 (NASDAQ: BNPCX)
UBS Global Allocation Y                 (NASDAQ: BPGLX)
UBS Global Bond A                       (NASDAQ: BNGBX)
UBS Global Bond B                       (NASDAQ: BNDBX)
UBS Global Bond Y                       (NASDAQ: BPGBX)
UBS Global Equity A                     (NASDAQ: BNGEX)
UBS Global Equity B                     (NASDAQ: BNEBX)
UBS Global Equity C                     (NASDAQ: BNECX)
UBS Global Equity Y                     (NASDAQ: BPGEX)
UBS High Yield A                        (NASDAQ: BNHYX)
UBS High Yield B                        (NASDAQ: BNHBX)
UBS High Yield C                        (NASDAQ: BNHCX)
UBS High Yield Y                        (NASDAQ: BIHYX)
UBS International Equity A              (NASDAQ: BNIEX)
UBS International Equity B              (NASDAQ: BNIBX)
UBS International Equity C              (NASDAQ: BNICX)
UBS International Equity Y              (NASDAQ: BNUEX)
UBS PACE Global Fixed-Income A          (NASDAQ: PWFAX)
UBS PACE Global Fixed-Income B          (NASDAQ: PWFBX)
UBS PACE Global Fixed-Income C          (NASDAQ: PWFCX)
UBS PACE Global Fixed-Income P          (NASDAQ: PCGLX)
UBS PACE Global Fixed-Income Y          (NASDAQ: PWFYX)
UBS PACE Government Secs Fix-Income A   (NASDAQ: PFXAX)
UBS PACE Government Secs Fix-Income B   (NASDAQ: PFXBX)
UBS PACE Government Secs Fix-Income C   (NASDAQ: PFXCX)
UBS PACE Government Secs Fix-Income P   (NASDAQ: PCGTX)
UBS PACE Government Secs Fix-Income Y   (NASDAQ: PFXYX)
UBS PACE Intermediate Fixed-Inc A       (NASDAQ: PIFAX)
UBS PACE Intermediate Fixed-Inc B       (NASDAQ: PIFBX)
UBS PACE Intermediate Fixed-Inc C       (NASDAQ: PIICX)
UBS PACE Intermediate Fixed-Inc P       (NASDAQ: PCIFX)
UBS PACE Intermediate Fixed-Inc Y       (NASDAQ: PIFYX)
UBS PACE International Em Mkts Eq A     (NASDAQ: PWEAX)
UBS PACE International Em Mkts Eq B     (NASDAQ: PWEBX)
UBS PACE International Em Mkts Eq C     (NASDAQ: PWECX)
UBS PACE International Em Mkts Eq P     (NASDAQ: PCEMX)
UBS PACE International Em Mkts Eq Y     (NASDAQ: PWEYX)
UBS PACE International Equity A         (NASDAQ: PWGAX)
UBS PACE International Equity B         (NASDAQ: PWGBX)
UBS PACE International Equity C         (NASDAQ: PWGCX)
UBS PACE International Equity P         (NASDAQ: PCIEX)
UBS PACE International Equity Y         (NASDAQ: PWIYX)
UBS PACE Large Company Growth Eq A      (NASDAQ: PLAAX)
UBS PACE Large Company Growth Eq B      (NASDAQ: PLABX)
UBS PACE Large Company Growth Eq C      (NASDAQ: PLACX)
UBS PACE Large Company Growth Eq P      (NASDAQ: PCLCX)
UBS PACE Large Company Growth Eq Y      (NASDAQ: PLAYX)
UBS PACE Large Company Value Equity A   (NASDAQ: PCPAX)
UBS PACE Large Company Value Equity B   (NASDAQ: PCPBX)
UBS PACE Large Company Value Equity C   (NASDAQ: PLVCX)
UBS PACE Large Company Value Equity P   (NASDAQ: PCLVX)
UBS PACE Large Company Value Equity Y   (NASDAQ: PLVYX)
UBS PACE Municipal Fixed-Income A       (NASDAQ: PMUAX)
UBS PACE Municipal Fixed-Income B       (NASDAQ: PFIBX)
UBS PACE Municipal Fixed-Income C       (NASDAQ: PMUCX)
UBS PACE Municipal Fixed-Income P       (NASDAQ: PCMNX)
UBS PACE Municipal Fixed-Income Y       (NASDAQ: PMUYX)
UBS PACE Small/Medium Company Gr Eq A   (NASDAQ: PQUAX)
UBS PACE Small/Medium Company Gr Eq B   (NASDAQ: PUMBX)
UBS PACE Small/Medium Company Gr Eq C   (NASDAQ: PUMCX)
UBS PACE Small/Medium Company Gr Eq P   (NASDAQ: PCSGX)
UBS PACE Small/Medium Company Gr Eq Y   (NASDAQ: PUMYX)
UBS PACE Small/Medium Company Vl Eq A   (NASDAQ: PEVAX)
UBS PACE Small/Medium Company Vl Eq B   (NASDAQ: PEVBX)
UBS PACE Small/Medium Company Vl Eq C   (NASDAQ: PEVCX)
UBS PACE Small/Medium Company Vl Eq P   (NASDAQ: PCSVX)
UBS PACE Small/Medium Company Vl Eq Y   (NASDAQ: PVEYX)
UBS PACE Strategic Fixed-Income A       (NASDAQ: PBNAX)
UBS PACE Strategic Fixed-Income B       (NASDAQ: PBNBX)
UBS PACE Strategic Fixed-Income C       (NASDAQ: PBNCX)
UBS PACE Strategic Fixed-Income P       (NASDAQ: PCSIX)
UBS PACE Strategic Fixed-Income Y       (NASDAQ: PSFYX)
UBS S&P 500 Index A                     (NASDAQ: PSPIX)
UBS S&P 500 Index C                     (NASDAQ: PWSPX)
UBS S&P 500 Index Y                     (NASDAQ: PSPYX)
UBS U.S. Allocation A                   (NASDAQ: PWTAX)
UBS U.S. Allocation B                   (NASDAQ: PWTBX)
UBS U.S. Allocation C                   (NASDAQ: KPAAX)
UBS U.S. Allocation Y                   (NASDAQ: PWTYX)
UBS U.S. Bond A                         (NASDAQ: BNBDX)
UBS U.S. Bond B                         (NASDAQ: BNOBX)
UBS U.S. Bond C                         (NASDAQ: BNOCX)
UBS U.S. Bond Y                         (NASDAQ: BPBDX)
UBS U.S. Large Cap Equity A             (NASDAQ: BNEQX)
UBS U.S. Large Cap Equity B             (NASDAQ: BNQBX)
UBS U.S. Large Cap Equity C             (NASDAQ: BNQCX)
UBS U.S. Large Cap Equity Y             (NASDAQ: BPEQX)
UBS U.S. Large Cap Growth A             (NASDAQ: BNLGX)
UBS U.S. Large Cap Growth B             (NASDAQ: BNWBX)
UBS U.S. Large Cap Growth C             (NASDAQ: BNWCX)
UBS U.S. Large Cap Growth Y             (NASDAQ: BLGIX)
UBS U.S. Large Cap Value Equity A       (NASDAQ: BNVAX)
UBS U.S. Large Cap Value Equity B       (NASDAQ: BNVBX)
UBS U.S. Large Cap Value Equity C       (NASDAQ: BNVCX)
UBS U.S. Large Cap Value Equity Y       (NASDAQ: BUSVX)
UBS U.S. Small Cap Growth A             (NASDAQ: BNSCX)
UBS U.S. Small Cap Growth B             (NASDAQ: BNMBX)
UBS U.S. Small Cap Growth C             (NASDAQ: BNMCX)
UBS U.S. Small Cap Growth Y             (NASDAQ: BISCX)

If you purchased any of the UBS mutual funds through a UBS broker between May 1, 2000 through April 30, 2005, inclusive, and sustained damages, you may, no later than September 30, 2005, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody maintains offices in both New York and Los Angeles.

The action is pending in the United States District Court for the Southern District of New York against defendant UBS and its affiliated entities. The complaint alleges that during the Class Period, defendants served as financial advisors who purportedly provided unbiased and honest investment advice to their clients. Unbeknownst to investors, defendants, in clear contravention of their disclosure obligations and fiduciary responsibilities, failed to properly disclose that they had engaged in a scheme to aggressively push UBS sales personnel to steer clients into purchasing certain UBS Funds and funds that participated in the UBS revenue sharing program (collectively, Shelf Space Funds) that provided financial incentives and rewards to UBS and its personnel based on sales. The complaint alleges that defendants' undisclosed sales practices created an insurmountable conflict of interest by providing substantial monetary incentives to sell Shelf-Space Funds to their clients, even though such investments were not in the clients' best interest. UBS' failure to disclose the incentives constituted violations of federal securities laws.

The action also includes a subclass of people who held any shares of UBS Mutual Funds. The complaint additionally alleges that the investment advisor subsidiary of UBS, UBS Global Asset Management, created further undisclosed material conflicts of interest by entering into revenue-sharing agreements with UBS financial Advisors to push investors into UBS proprietary funds, regardless of whether such investments were in the investors' best interests. The investment advisors financed these arrangements by illegally charging excessive and improper fees to the fund that should have been invested in the underlying portfolio. In doing so, they breached their fiduciary duties to investors under the Investment Company Act and state law and decreased shareholders investment returns.

The action includes a second subclass of persons who purchased a UBS Financial Plan that held Tier I mutual funds. The UBS Financial Plans include, but are not limited to, UBS Personalized Asset Consulting and Evaluation Plan, InsightOne accounts, and/or a resource management accounts.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by calling toll-free 1- 800-337-4983, or by e-mail at SSBNY@aol.com, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at www.ssbny.com.

Contact Information

  • Contact:
    Tzivia Brody, Esq
    Stull, Stull & Brody
    1-800-337-4983
    Email Contact
    212/490-2022