UBS PaineWebber has been sued for fraud by two investors who accuse the firm of making ``manipulative and deceptive'' recommendations to buy and sell Enron Corp. stock, according to a statement by the plaintiffs' lawyers.
"The Enron situation is very ugly," a UBS PaineWebber rep in Texas told Registered Rep. "We're not going to be the only firm sued in this matter. This Enron disaster is going to have long lasting ramifications on us, the firms and the industry."
The complaint, filed in federal court in Houston, says UBS PaineWebber made fraudulent recommendations regarding Enron stock `from March 2001, and possibly before, through November 2001, according to the statement.
The complaint was filed by Spencer & Associates P.C., on behalf of Enron shareholders Kevin Lamkin and Janice Schuette, the law firm says.
The suit seeks class-action status.
A UBS PaineWebber spokesperson says the lawsuit is without merit and that the firm intends to vigorously defend itself.