Emails become smoking gun in UBS vs. Pursuit Partners

Reminiscent of the analyst scandals of the dot.com bubble, emails have proved to be the smoking gun in the case filed against UBS (UBS) by Pursuit Partners LLC. In the exposed emails, employees called the investment-grade securities sold to Pursuit Partner "crap" and "vomit" as they desperately tried to get rid of the securities.

After listening to the evidence presented by Pursuit and its lawyers during a three-day hearing, Connecticut Court Judge John F. Blawie ruled that they had established probable cause to back up their claim that UBS employees "were in possession of material nonpublic information regarding imminent ratings downgrades on the Notes it sold" to Pursuit.