General Ret. Sys. of Detroit of the City of Detroit v. UBS
United States District Court for the Eastern District of Michigan, Southern Division
April 16, 2012, Decided; April 16, 2012, Filed
Case No. 10-CV-13920
ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS' MOTION TO DISMISS FIRST AMENDED COMPLAINT [DOC. 45]
Plaintiffs are the General Retirement System of the City of Detroit ("GRS") and the Police and Fire Retirement System of the City of Detroit ("PFRS") (collectively, the "Systems"). The Systems are pension plans established by the Charter and Municipal Code of the City of Detroit. The Systems filed this action against UBS Securities, LLC, UBS AG, and UBS Investment Bank, alleging that the UBS defendants fraudulently induced the Systems into buying an equity position in a [*2] collateralized loan obligation ("CLO"), and for breaches of their fiduciary duty for improperly liquidating the securities solely for their own benefit, thereby depriving the Systems of their investment.
In its June 30, 2011 Order, the court dismissed plaintiffs' claims for breach of fiduciary duty under common law and MPERSIA, negligent misrepresentation, breach of contract as to the Letter Agreements (against UBS AG), breach of contract as to the Engagement Agreement, breach of the implied covenant of good faith and fair dealing, unjust enrichment (against UBS Securities), and accounting. The court directed plaintiffs to amend their complaint to plead their intentional fraud and silent fraud claims with the level of particularity required by Fed. R. Civ. P. 9(b). The court instructed plaintiffs to identify the "specific misrepresentations that form the basis of their claims, how and when they were made, and by whom they were made". (Order, p. 31). On August 4, 2011, plaintiffs filed their First Amended Complaint and Jury Demand.
The matter is before the court on defendants' motion to dismiss the amended complaint.Read The Full CaseNot a Lexis Advance subscriber? Try it out for free.
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2012 U.S. Dist. LEXIS 53292 *; 2012 WL 1278300
GENERAL RETIREMENT SYSTEM OF THE CITY OF DETROIT, and POLICE AND FIRE RETIREMENT SYSTEM OF THE CITY OF DETROIT, Plaintiffs, vs. UBS, AG and UBS SECURITIES, LLC, Defendants.
Subsequent History: Reconsideration granted by, Request denied by General Ret. Sys. of Detroit v. UBS, 2012 U.S. Dist. LEXIS 95186 ( E.D. Mich., July 10, 2012)
Prior History: General Ret. Sys. v. UBS, 2012 U.S. Dist. LEXIS 17605 ( E.D. Mich., Feb. 13, 2012)
Memorandum, plaintiffs', amended complaint, representations, misrepresentations, defendants', motion to dismiss, warehouse, allegations, sophisticated investor, letter agreement, fraud claim, tranches, induced, parties, silent, unjust enrichment, loans, alleged misrepresentation, pleadings, Collateral, fraudulent, justifiable reliance, factual allegations, breach of contract, insurance policy, economic cycle, disclaimer, projected, returns