NEW YORK - A New York state court justice erred in denying dismissal of a fraudulent inducement lawsuit filed by UBS Securities LLC and UBS AG, London Branch, that seeks to recover $686 million in losses in a collateralized debt obligation (CDO) transaction, a New York appellate panel ruled March 13 (UBS Securities LLC, et al. v. Highland Financial Partners, L.P., et al., No. 650097/09, N.Y. Sup., App. Div., 1st Dept.).