UBS Now Faces 401(k) Plan Investigation

July 29, 2008 ( - Holzer Holzer & Fistel, LLC announced it is investigating possible violations of the Employee Retirement Income Security Act (ERISA) related to UBS AG's 401(k) Retirement Savings Plan.

According to the announcement, the investigation centers on whether UBS and plan administrators breached their fiduciary duties to plan participants by, among other things, making imprudent investments in company stock and otherwise failing to prudently and loyally manage the plan’s investments.

The bank is facing lawsuits by three states claiming it committed fraud by misleading investors in its marketing of auction-rate securities as liquid instruments that were easy to buy and sell (See NY Next to Sue UBS ). On Monday, reports surfaced that the bank suspended its head of fixed income in the U.S. and global head of municipal securities, David Shulman (See UBS Reportedly Benches Fixed Income Head Amid Auction-Rate Probes).