Shareholder Sues UBS Over US Offshore Tax

The complaint alleges the Swiss bank concealed the scheme from U.S. authorities, while intentionally creating the impression the company's wealth-management group was experiencing unprecedented growth. The lawsuit also claims UBS routinely assured investors and analysts that it employed state-of-the-art risk management tactics and had robust internal controls to mitigate risks.

"These statements were all false and misleading because at the time they were made defendants were actively engaged in a tax-evasion scheme which, even when investigators had fingered some of the company's lower level client advisors, defendants ultimately could not abandon because it was simply too valuable to UBS," the lawsuit said.
The company's stock price "plummeted" when the scheme became public, the complaint said.