UBS Now Faces 401(k) Plan Investigation

Holzer Holzer&Fistel, LLC, is investigating possible violations of the Employee Retirement Income Security Act (ERISA) related to UBS AG's 401(k) plan.

According to a release, the investigation centers on whether UBS and plan administrators breached their fiduciary duties to plan participants by, among other things, making imprudent investments in company stock and otherwise failing to prudently and loyally manage the plan’s investments.

The bank also faces lawsuits by three states claiming it committed fraud by misleading investors in its marketing of auction-rate securities as liquid instruments that were easy to buy and sell (see NY Next to Target UBS). On Monday, reports surfaced that the bank suspended its head of fixed income in the U.S. and global head of municipal securities, David Shulman (see UBS Benches Fixed Income Head Amid Auction-Rate Probes).