By Tanya Agrawal
Jan 16 (Reuters) - ClearOne Inc, a maker of audio and video
conferencing products, said UBS Financial Services Inc agreed to
pay it $45 million after the two parties settled an auction-rate
securities dispute.
However, ClearOne said an arbitration panel denied a similar
claim against Morgan Stanley that sought $100 million in
damages.
Auction-rate securities were sold as highly-liquid
short-term instruments similar to money-market funds but with
slightly higher returns.
Thousands of investors were left with securities that could
not be sold when the $330 billion auction-rate market failed in
2008 after large investment banks that ran these auctions faced
liquidity crunch.
Shares of ClearOne closed at $4.43 on the Nasdaq on
Tuesday.
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