September 12, 2025
UBS’ investment banking division can’t shed claims that it manipulated trading prices for a software company by means of spoofing, or placing trades it later canceled, though a Manhattan federal judge on Friday tossed the software company’s allegations relating to the alleged scheme’s long-term effect on its trading prices.
In a partial dismissal order, U.S. District Judge Dale E. Ho of the Southern District of New York found that the company, Phunware Inc., had failed to show in the latest version of its complaint that the alleged trading price manipulation had what Phunware described as “a long-term adverse effect on the market price of [Phunware] stock.”
“Phunware’s allegations with respect to such purported long-term effects … are too conclusory to suffice on a motion to dismiss,” Judge Ho said Friday.
However, he noted that certain claims about the short-term effect of the spoofing, “when viewed in the light most favorable to the plaintiff, are sufficient at this stage.”
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Phunware is represented by Laura H. Posner, Michael B. Eisenkraft and Raymond M. Sarola of Cohen Milstein Sellers & Toll PLLC.