NEW YORK, Aug. 14, 2012 (GLOBE NEWSWIRE) -- Notice is hereby given that Scott+Scott LLP has filed a class action complaint in the United States District Court for the District of Puerto Rico against UBS Financial Services, Inc. of Puerto Rico ("UBS PR") and certain officers, subsidiaries, affiliates and divisions of UBS PR (collectively, the "Defendants."). The lawsuit was filed on behalf of purchasers of the following UBS PR-affiliated closed-end funds (collectively, the "CEFs") during the time period between January 1, 2008 to May 1, 2012, inclusive (the "Class Period"):
- Puerto Rico Investors Tax-Free Fund IV, Inc.;
- Puerto Rico Fixed Income Fund III, Inc.;
- Puerto Rico Fixed Income Fund V, Inc.;
- Puerto Rico Investors Bond Fund I, Inc.;
- Puerto Rico AAA Portfolio Bond Fund, Inc.; and
- Puerto Rico AAA Portfolio Bond Fund II, Inc.
The putative class action seeks remedies under the Securities Exchange Act of 1934 (the "Exchange Act"), the Puerto Rico Securities Act and common law.
The complaint alleges that, throughout the Class Period, Defendants issued materially false and misleading statements regarding UBS PR CEFs. Specifically, Plaintiffs allege that Defendants promoted UBS PR CEFs' extraordinary market returns, low risk and low volatility, while simultaneously not disclosing that CEFs' prices and liquidity were manipulated by UBS PR's support of the market. The complaint also alleges that Defendants misrepresented and/or did not disclose in the CEFs' offering documents and related communications that: (a) CEF prices were set solely at the discretion of Defendants and not based on market forces such as supply and demand; (b) as the dominant CEF broker-dealer, UBS PR controlled the secondary market for CEFs, and that any secondary market sales investors wanted to make depended largely on UBS PR's ability to solicit additional customers or its own willingness to purchase shares into its inventory; (c) UBS PR was purchasing millions of dollars of CEF shares into its own inventory while promoting the appearance of a liquid market, and thereby artificially propping up prices and creating the appearance of liquidity; and (d) UBS PR's corporate parent was pressuring UBS PR to reduce its inventory of CEF shares as its inventory rose well beyond internal limits. According to the complaint, in selling 75% of its inventory and ceasing to use its inventory to support the CEF secondary market, UBS PR caused prices to decline, thereby harming class members.
If you purchased UBS PR CEFs during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than October 15, 2012. Any member of the investor class may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Michael Burnett, Esq. at Scott+Scott (mburnett@scott-scott.com (800) 404-7770, (860) 537-5537) or visit the Scott+Scott website for more information:
http://www.scott-scott.com/cases/new/securities-fraud-litigation-1725-ubs-financial-services-inc-of-puerto-rico.html
There is no cost or fee to you.
Scott+Scott is one of the leading class action law firms in the United States, with offices in New York, Connecticut, Ohio and California. The firm has been directly responsible for the recovery of hundreds of millions of dollars on behalf of its clients through the prosecution of major securities, antitrust and employee retirement plan class action lawsuits. The firm represents pension funds, foundations, individuals and other entities worldwide.