Broker Chung Wu was sacked for violating company e-mail policy when he sent messages to 73 clients in August last year warning them to sell shares in Enron as he thought that the company was close to collapse. UBS PaineWebber was rating Enron a 'strong buy' at the time.
A group of Enron shareholders are now suing the securities company for fraud on the basis that they were making favourable recommendations about the company when they had knowledge that all was not well. The group are citing Wu's dismissal as evidence to support their claim.
The securities company maintained its 'strong buy' recommendation on Enron until 28th November, just four days before the company filed for bankruptcy.
UBS Sued - Broker Sacked
UBS PaineWebber are believed to have dismissed a broker last summer after complaints from Enron officials that he was encouraging clients to sell shares in the former energy giant.
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