On June 10, Judge Denise Cote of the U.S. District Court for the Southern District of New York granted in part and denied in part UBS's motion to dismiss a lawsuit filed against it by the National Credit Union Administration, as liquidating agent for Southwest Corporate Federal Credit Union and Members United Corporate Federal Credit Union. The credit unions each owned certain RMBS issued by UBS. Following her ruling in an earlier case NCUA brought against Morgan Stanley, Judge Cote dismissed NCUA's federal Securities Act claims as time barred. Judge Cote denied UBS's motion to dismiss NCUA's claims under Illinois and Texas Blue Sky Laws, holding that NCUA had satisfied the liberal pleading standard by making the requisite "originator-specific allegations" to support its claims that UBS made material misrepresentations regarding whether the originators had complied with underwriting guidelines. Order.
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