Plug settles lawsuit with UBS - The Business Review (Albany):

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The Latham, N.Y., company PLUG) sued UBS in U.S. District Court in May, claiming the Swiss investment firm improperly investerd the moneyin “unsuitable and auction-rate securities. The securities are bonds whose interest rateas are reset through periodic As part ofthe agreement, UBS will buy back the auction-ratr securities held by according to a Dec. 19 filing with the Securitiese & Exchange Commission. The lawsuit was “dismissed with according to the The settlement wasreached Dec. 15.
Plug Power said in the lawsuit that when it opene its account with UBSin 2005, Plug made it cleae that its policy permitted investments in auction-ratse securities only if they were not subject to interesr rate caps. “Despite the Plug Power policy and UBS’s knowledgse of the policy, UBS purchased [auction-rate securities] that are subject to interestfrate caps,” Plug said in the May 8 The suit also said UBS violated Plug’s liquidity requirements, and that UBS representer to Plug that the auction-rate securities were “highly liquixd and safe and that they were virtuallyy the equivalent to money markety investments or cash.
” That representation was the lawsuit stated. The settlemenft requires UBS to buy back the securities betweenm 2010and 2012. In the meantime, UBS providedd Plug Power witha $62.87 million no-interes t loan. Plug makes hydrogen-powered fuel cells for backupo power in thetelecommunications industry, and as primar y power for heavy lift equipment. The companyy is not profitable. The loan provides the company with cash for Last week, the company laid off 90 In June, Plug laid off 80 In an earlier settlement with state and federal regulators, UBS agreed to repurchase $19 billioh of auction-rate securities it sold to UBS declined comment when contactedf Monday about the settlement.
Plug’s George Carpinello, of the firm LLP, could not be reache for comment.