Two Detroit retirement system pension plans are suing UBS AG for allegedly defrauding them into investing and losing $40 million in a complex structured product called a Collateralized Loan Obligation or CLO. The Plaintiffs allege, among other things, that UBS misrepresented the risks associated with the CLO as well as its ability to monitor and control those risks. Plaintiffs further allege that the misrepresentations were part of a fraudulent scheme by UBS to move risky loans from its balance sheet by securitizing them and selling tranches or slices to unsuspecting buyers like Plaintiffs.