In announcing the court filing, Oregon Attorney General John Kroger said the PERF losses followed allegations the bank was involved in a tax evasion scheme, according to the Oregon Statesman Journal .
“We’re talking about some substantial losses that occurred after they began revealing what they’d been up to,” James Sinks, a spokesman for Oregon State Treasurer Ben Westlund, told the newspaper
UBS also is accused in the lawsuit (see Pension Fund Sues UBS ) of not truthfully disclosing its participation in the subprime mortgage market.
According to the newspaper, UBS stock traded above $66 in 2007, but the price began to drop in 2008 as the allegations were made public. The stock closed at $9.89 Wednesday.
UBS entered into a settlement in February with the U.S. government to head off a likely indictment. The company confessed that it had funneled assets from thousands of wealthy Americans out of the U.S. UBS paid $780 million to settle the case.