New Orleans Employees' Retirement System filed a class-action lawsuit Friday against UBS, claiming a tax-evasion investigation of the company has sent its stock value plunging by 60% since May 2008.
The U.S. Department of Justice is investigating whether some of UBS U.S. clients sought to evade their U.S. tax obligations. No charges have been filed against UBS.
When the scheme was finally uncovered by U.S. authorities and UBS began disclosing the true nature of its Swiss banking business, the companys stock price plummeted, causing substantial losses to UBS shareholders, according to the lawsuit, which was filed in U.S. District Court in New York.
Doug Morris, a spokesman for UBS, said the company had no comment.
The suit is seeking a recovery in the billions of dollars among all members of the class, according to a news release from the $270 million systems counsel, Labaton Sucharow. The class-action includes purchasers of UBS stock between May 4, 2004, and Jan. 26, 2009.