It has been a busy week for Judge Sullivan. On Friday, Judge Sullivan dismissed with prejudice a securities fraud class action brught against UBS and certain of its executives alleging that UBS misled investors about its exposure to mortgage-backed securities and auction rate securities, and about its compliance with U.S. tax and securities laws.

The court found that plaintiffs had not sufficiently aleged scienter with regard to the MBS and ARS allegations, and that statements made regarding complaince with U.S. laws were nothing more than “non-actionable puffery.”  Although the action was initially commenced in 2007, the motions to dismiss decided by Judge Sullivan on Friday were only filed in December 2011 (after the court dismissed all claims based on purchases of UBS shares made outside of the U.S. following after the Supreme Court’s decision in Morrison v. National Australia Bank).