UBS Financial Services agreed to pay $2.5 million to settle a class-action lawsuit claiming the bank provided inaccurate tax information to holders of taxable municipal bonds.
(Bloomberg) — UBS Financial Services agreed to pay $2.5 million to settle a class-action lawsuit claiming the bank provided inaccurate tax information to holders of taxable municipal bonds.
A federal judge in New Jersey gave preliminary approval to the deal Wednesday and scheduled a hearing in December to iron out details and make a final determination, according to a court filing.
Richard Goodman sued in 2021 on behalf of himself and other customers who bought taxable municipal bonds in accounts maintained by UBS. He claimed the bank, which was overseeing more than $90 billion of municipal bonds, didn’t report amortizable bond premiums on forms clients used to prepare tax returns, resulting in overstatement of income and tax payments.
The settlement, reached after private mediation, didn’t specify how many clients will be part of the class, but there are “likely at least hundreds,” according to the filing.
Attorneys for UBS and Goodman didn’t return messages seeking comment on Friday.
Read more: UBS’s Botched Muni Statements Cost Clients Millions, Suit Says
The case is Goodman v. UBS Financial Services, 21-cv-18123, U.S. District Court, New Jersey.
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