UBS pays $120m to settle Lehman allegations

UBS has agreed to pay $120m (£77m) to settle a lawsuit regarding the misleading of investors about the financial state of Lehman Brothers.

The settlement will resolve a five year litigation battle regarding the selling of nearly $1bn of Lehman structured notes between March 2007 and September 2008 when Lehman filed for bankruptcy protection.

Earlier this week, UBS also agreed to pay $50m for misleading investors over collateralised debt obligations.