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Block & Landsman Announce Class Action Against UBS to Recover

Broker Compensation

Suit Seeks to Recapture Compensation for Underpayment of Commissions for the Sale of Auction Rate Securities Dating to 1993

Chicago, Ill. (August 8, 2007) – Block & Landsman, a Chicago law firm that concentrates its practice in securities litigation and the representation of individual registered representatives and associated persons, has partnered with Nicholas Iavarone of the Iavarone Law Firm to file a class action suit, pending in the Northern District of Illinois, that seeks to recover underpayments to UBS brokers dating to 1993 relating to the sale of auction rate securities. The suit alleges that as a result of an error in UBS’ compensation computer system, brokers were not paid the full 25 basis points a year on each $25,000 auction rate security purchased by the brokers’ customers.

Auction rate securities are debt securities, typically issued by a municipality, in which the yield is reset on each payment date via a Dutch auction in which all successful bidders receive the same yield (the lowest yield that results in the sale of the entire amount to be issued). UBS is one of the major participants in the $200 billion dollar auction rate market.

“UBS attempted to fit a security sold weekly with compensation based on a yearly percentage,” said Alan Block. “The attempt to essentially fit a fixed compensation rate in a rounding commission system resulted in an error which, as a result of the tens of billions of dollars of ARS products sold by UBS, materially under-compensated the brokers.”

Larry Landsman, another principal of Bock & Landsman said, “We are excited with our partnering with Nick who brings twenty-seven years of experience representing brokers in litigation involving lost compensation, non-compete agreements, defamatory U-5 filings and in regulatory investigations.” For twenty-seven years, Mr. Iavarone has arbitrated and litigated cases involving securities, commodities, derivatives, and private equities in both federal and state courts nationwide and represents various broker/dealers firms such as Bear Stearns and futures commission merchants such as Peregrine Financial Services.

Mr. Iavarone has been a speaker at numerous industry seminars, including the Securities Industry Association, and continuing education programs on securities litigation and compliance issues. He has authored law review articles on mandatory arbitration clauses. Prior to joining forming his own firm, Mr. Iavarone practiced at SimmonsCooper. You may visit Mr. Iavarone at www.iavaronefirm.com.

About Block & Landsman

The principals of Block & Landsman each has nearly twenty years experience litigating complex securities and commercial cases, including class action lawsuits, in state and federal courts around the country, as well as various arbitration forums. Block & Landsman have represented claimants and brokers before the NASD, SEC and other industry forums.

Alan Block is a graduate of the University of Illinois, where he received a degree in Pharmaceutical Sciences, and holds a J.D. from John Marshall Law School, where he served as Associate Editor of the John Marshall Law Review. He has served as a guest lecturer and has made numerous presentations at universities and private organizations on issues of business law. Mr. Block can be reached at alan@block-landsman.com.

Larry Landsman is a graduate of Syracuse University and holds a J.D. from IIT-Chicago Kent College of Law, where he graduated cum laude. He has authored several articles published in a variety of legal journals, and has been a speaker at numerous industry and private seminars. Mr. Landsman can be reached at larry@block-landsman.com.

SOURCE: Block & Landsman