UBS May Be Sued By The SEC Over Health South Scandal

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

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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.

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