PHAZAR CORP, announced today, that on June 26, 2008, the Company filed a claim in arbitration against UBS Financial Services, Inc. ("UBS") with the Financial Industry Regulatory Authority, Inc. ("FINRA" formerly called the NASD) for fraud, breach of fiduciary duty, breach of contract and negligence in connection with the sale by UBS to the Company of certain "auction rate securities" in the aggregate principal amount of $2,650,000 (the "auction rate securities").
According to the Company, in the arbitration proceeding, the Company claims it invested its liquid assets in auction rate securities in reliance on UBS repeated representations to the Company that the auction rate securities were safe, liquid investments, the equivalent of cash and a prudent investment for the Company's cash.
