(Reuters) – Bond insurer Assured Guaranty Ltd said UBS AG will pay it $358 million to settle a lawsuit that accused the bank of falsely representing the quality of the loans underlying $1.49 billion of mortgage-backed securities.
Assured shares were up 3 percent at $21.47 in early trading on Monday on the New York Stock Exchange.
UBS and Assured have also entered into loss-sharing agreement on future claims, which will take effect from the third-quarter.
“UBS represents the third financial institution with which we have reached a major settlement since 2011,” Assured Chief Executive Dominic Frederico in a statement.
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