UBS is facing litigation from the US Securities and Exchange Commission (SEC) over possible breaches in securities laws incurred when working for the scandal-ridden healthcare company HealthSouth.
UBS said it had received a so-called “Wells Notice” from the Sec informing the bank that the regulator is considering civil enforcement proceedings against it.
Federal authorities have accused HealthSouth of improperly inflating earnings by $2.7 billion over a run of years. HealthSouth’s former CEO, Richard Scrushy, faces a 58-count indictment for his alleged role in the scandal. He has pleaded not guilty.
UBS said it was cooperating fully with the U.S. markets watchdog. In January, investors filed an $8 billion class action suit against HealthSouth, UBS and Citigroup, alleging they misled investors.