New York Court Permits Aiding and Abetting Claims Against UBS Parent Company to Proceed

On April 17, Justice Marcy Friedman of the Supreme Court of the State of New York dismissed most claims in a suit against UBS AG and its subsidiaries arising out of RMBS purchases by plaintiff Deutsche Zentral-Genossenschaftsbank AG (DZ Bank).  Following her prior decisions, Justice Friedman allowed fraud claims to proceed but dismissed plaintiff’s claims for fraudulent concealment, negligent misrepresentation, rescission based on mutual mistake, and punitive damages.  The court allowed claims alleging aiding and abetting by parent companies UBS and UBS Americas Inc. to proceed based on allegations that the defendants shared high-level personnel.  Decision.