
In a world where so much is done online rather than locally, we tend to forget that when we cross national borders, the different laws and customs may create complications. Still, this class action alleges, certain standards still apply. The complaint claims that UBS Financial Services, Inc. mishandled the investment accounts of overseas customers, sometimes freezing them, converting them to cash, or closing them, without proper notice
The class for this action is all citizens of the US living outside the US who had their investment accounts managed by UBS frozen, changed to cash, or closed, without timely notification.
Plaintiff Kellie Delkeskamp was living in California when she set up her investment accounts with UBS. These, the complaint says, included “IRAs, education funds, and other investment vehicles.” According to the complaint, “[a] critical component of the relationship” she had with the company “was providing investment advice and acting as a fiduciary…”
Delkeskamp later moved to Nice, France, where she currently lives.
The complaint claims, “At some point thereafter unknown to Plaintiff, but believed to be in early 2014, [UBS] made the determination that it would no longer be servicing the accounts of its customers with US-based accounts that did not live in the United States.”
At that point, the complaint claims, UBS “cashed out [Delkeskamp’s] accounts and/or restricted their ability to earn any investment income.” In conjunction with this, it also “declin[ed] to provide ongoing investment advice with respect to these accounts.”
The worst part? According to the complaint, “Notwithstanding this dramatic change in the nature of the account that completely eliminated any investment benefit to [Delkeskamp], UBS failed to meaningfully notify [Delkeskamp] of the change in status and/or that she would not be earning any investment returns from her accounts going forward.”
Delkeskamp only found out about the changes when she checked her accounts on her own.
The complaint contends that UBS first of all breached its fiduciary duty, because Delkeskamp had a contractual relationship with the company as an account holder that made it a fiduciary. It also charges that UBS “breached the implied covenant of good faith and fair dealing by changing the accounts from an IRA, which would be expected to product investment income, to cash accounts, without providing meaningful notice of this change.”
It also accuses the company of fraudulent misrepresentation or omission, unjust enrichment, and violation of New York’s General Business Law with deceptive acts or practices, among other things.
Article Type: LawsuitTopic: Consumer
Most Recent Case Event
UBS Financial Made Account Changes for Overseas Customers Complaint
October 16, 2020
In a world where so much is done online rather than locally, we tend to forget that when we cross national borders, the different laws and customs may create complications. Still, this class action alleges, certain standards still apply. The complaint claims that UBS Financial Services, Inc. mishandled the investment accounts of overseas customers, sometimes freezing them, converting them to cash, or closing them, without proper notice
UBS Financial Made Account Changes for Overseas Customers ComplaintCase Event History
UBS Financial Made Account Changes for Overseas Customers Complaint
October 16, 2020
In a world where so much is done online rather than locally, we tend to forget that when we cross national borders, the different laws and customs may create complications. Still, this class action alleges, certain standards still apply. The complaint claims that UBS Financial Services, Inc. mishandled the investment accounts of overseas customers, sometimes freezing them, converting them to cash, or closing them, without proper notice
UBS Financial Made Account Changes for Overseas Customers Complaint