NEW YORK (TheStreet) -- UBS (UBS) - Get UBS Group AG Report shares are down today after the bank reported that its alternative off-exchange marketplace, also know as a dark pool, is being investigated by the SEC.
UBS revealed that the SEC has been investigating the Swiss bank since 2012, and that it could potentially be facing a class action lawsuit brought against it by traders in a New York federal court.
The lawsuit claims that the company's dark pools violated federal law by favoring high frequency traders over other traders in the market.
UBS shares are down -1.9% to $17.98 on Tuesday.
TheStreet Ratings team rates UBS AG as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate UBS AG (UBS) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income and reasonable valuation levels. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."