Peter C. Neumann, et al. v. UBS Securities LLC, UBS Financial Services Inc.
Published: Apr. 8, 2006 | Result Date: Dec. 6, 2005 | Filing Date: Jan. 1, 1900 |Case number: 0406338 Arbitration – $0
Facts
The claimants are Peter Neumann, Peter Neumann as Trustee for the Peter Chase Neumann Professional Corp., Peter Neumann as Trustee for the Peter Chase Neumann Professional Corp. Profit Sharing Plan and Renate Neumann. The respondents are UBS Securities LLC and UBS Financial Services Inc.
The claimants alleged breach of fiduciary duty, fraud, deceit, concealment, negligent misrepresentation, unsuitability and violation of Nevada securities laws. The claims were regarding the purchase of WorldCom shares in reliance on the recommendation of the respondents' analysts.
Unless admitted in the Answer, the respondents denied the claims. The respondents asserted the following defenses: failure to state a claim upon which relief may be granted, estoppel, waiver, any damages sustained by the claimants were proximately caused by their own acts or agents' acts, unclean hands, failure to mitigate, there were no misstatements and/or omissions in all statements, publications, filings, and/or reports in regard to WorldCom Inc. Further, the respondents asserted that they did not know and could not have known of any claimed untruths and/or omissions made to the claimants regarding the purchase of securities. The respondents also asserted that they did not act with scienter, the claimants did not rely on any misstatements and/or omissoins relating to the purchase of securities, statutes of limitation barred the claims, the claimants have not alleged facts that would establish that the respondents' conduct proximately caused the claimants' claimed damages. They also asserted that the claimed damages were due to the claimants' negligence, which was greater than the respondents' alleged negligence. The respondents thus asserted that the claims were barred.
Damages
The claimants sought an unspecified figures covering compensatory damages, special damages and punitive damages. They also sought an injunction to order the respondents to cease and desist from conduct illustrated in the Statement of Claim. Further, they requested prejudgment interest and costs, which included attorney fees. The respondents requested that the Statement of Claim be dismissed in its entirety.
Result
The panel decided: 1) The claimants' claims are denied in their entirety; 2) The parties shall bear their respective costs, including attorney fees; 3) Any and all relief not specifically addressed herein, including punitive damages, is denied.
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