The information contained on this web page is only a summary of information presented in more detail in the Notice of Pendency of Class Action and Proposed Settlement, Settlement Fairness Hearing, and Motion for Attorneys’ Fees and Reimbursement of Litigation Expenses (the “Notice”), which you can access by clicking here.  Since this website is just a summary, you should review the Notice for additional details.

Your Legal Rights Are Affected Whether You Act Or Do Not Act.  Please read the Notice carefully.

IF YOU BOUGHT OR ACQUIRED LEHMAN-ISSUED STRUCTURED PRODUCTS UNDERWRITTEN AND SOLD BY UBS FINANCIAL SERVICES, INC. ("UBSFS") IN 2007 AND 2008, YOU COULD RECEIVE A PAYMENT FROM A CLASS ACTION SETTLEMENT. 

A LIST OF THE STRUCTURED PRODUCTS INVOLVED IN THIS ACTION CAN BE DOWNLOADED BY CLICKING HERE. 

The Court’s Settlement Hearing

The Court will hold a Settlement Hearing at 4:30 p.m. on December 10, 2013, at the Daniel Patrick Moynihan United States Courthouse, 500 Pearl Street, Courtroom 21B, New York, NY 10007.  At this hearing, the Honorable Lewis A. Kaplan will consider whether the Settlement is fair, reasonable, and adequate.  The Court also will consider the proposed Plan of Allocation for the Net Settlement Fund and the application of Class Counsel for attorneys’ fees and reimbursement of expenses.

What is this case about?

This class action Settlement involves securities known as structured products that were issued by Lehman Brothers Holdings Inc. and underwritten and sold by UBS Financial Services Inc. in 2007 and 2008.  Structured products are a kind of security that consists of a fixed income security and a type of derivative, such as a basket of securities, options, commodities, or foreign currencies.  Some of the structured products involved in the class action also offered “principal protection.”  A list of the structured products that are part of this Settlement can be downloaded by clicking here.

The lawsuit alleges that UBSFS violated federal securities laws in underwriting and selling the Structured Products.  The plaintiffs contend, among other things, that the offering materials for the Structured Products contained materially false and misleading statements and omitted material information about Lehman’s financial condition and about the “principal protection” feature of some of the Structured Products.  During the litigation, the plaintiffs also inquired into the procedures by which UBSFS structured, marketed, and sold the Structured Products, the sales commissions earned, and communications between UBSFS financial advisors and customers.  UBSFS denies that it did anything wrong, or that any purchasers of Structured Products incurred losses due to any alleged misrepresentations or omissions in the offering materials.

The Settlement Benefits

A Settlement Fund of $120,000,000 (before deduction of attorneys’ fees and expenses and administrative costs) will be distributed to certain investors who bought or acquired the securities identified on Exhibit A during the relevant time period, and who make a “Recognized Claim” under the proposed Plan of Allocation.  Plaintiffs estimate that Settlement Class Members who purchased or acquired Structured Products with a total face value of approximately $892 million may have suffered damages during the relevant time period.  Assuming all Settlement Class Members submit valid and timely claims, plaintiffs estimate that the average recovery per damaged Structured Product under the Settlement is $1.34 for Structured Products with a face value of $10.00 and $134.00 for Structured Products with a face value of $1,000.00, before deduction of Court-awarded attorneys’ fees and expenses and administrative costs.

You can use the proposed Plan of Allocation to calculate your Recognized Claim.  It is unlikely that you will receive the full amount of your Recognized Claim, however, because your payment will depend on the number of valid Claim Forms that are received and the total of all Settlement Class Members’ Recognized Claims. The Plan of Allocation can be downloaded by clicking here.

The Rights of the Settlement Class Members

If you are a Class Member, you have the following options:

Submit a Claim Form

If you are a potential Settlement Class Member, to be eligible to share in the distribution of the Settlement proceeds, you must timely submit a valid Claim Form, which can be found by clicking here, postmarked no later than February 4, 2014.  If you are a potential Settlement Class Member and do not submit a valid Claim Form, you will not be eligible to share in the distribution of the Net Settlement Fund, but you will nevertheless be bound by any judgments or orders entered by the Court in the Action.

Exclude yourself from the Settlement

If you are a potential Settlement Class Member, but wish to exclude yourself from the Settlement Class, you must submit a written request for exclusion that is in accordance with the instructions set forth in the Notice and is postmarked no later than November 19, 2013.  If you are a potential Settlement Class Member and do not timely exclude yourself from the Settlement Class, you will be bound by any judgments or orders entered by the Court in the Action.

Object to the Settlement

Any objections to the proposed Settlement, Plan of Allocation, or Class Counsel’s application for attorneys’ fees and reimbursement of expenses must be mailed to the Court, Class Counsel, and Defense Counsel in accordance with the instructions set forth in the Notice, and received by each no later than November 19, 2013.

Further Information:

This website and the Notice summarizes the proposed Settlement.  For more details regarding this Settlement, please reference the Stipulation dated September 11, 2013 or other documents filed in the case under the “Court Documents” link on the left.  You may also contact the Claims Administrator or Class Counsel for further information regarding this Settlement:

If you have questions, you may call the Lehman Brothers Structured Products Litigation Help Line at 888-211-3565 or email info@LehmanSPSettlement.com.