UBS to pay ClearOne $45 mln to settle auction-rate securities dispute
(Reuters) - ClearOne Inc (CLRO.O), a maker of audio and video conferencing products, said UBS Financial Services Inc (UBS.N) agreed to pay it $45 million (28.1 million pounds), after an arbitration panel ruled in its favour in an auction-rate securities dispute.
However, ClearOne said it was denied a similar claim against Morgan Stanley (MS.N) that sought $100 million in damages.
Auction-rate securities were sold as highly-liquid short-term instruments similar to money-market funds but with slightly higher returns.
Thousands of investors were left with securities that could not be sold when the $330 billion auction-rate market failed in 2008 after large investment banks that ran these auctions faced liquidity crunch.
Shares of ClearOne closed at $4.43 on the Nasdaq on Tuesday.
(Reporting by Tanya Agrawal in Bangalore)
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