UBS Securities LLC and UBS Financial Services Inc. offered a defense against securities fraud allegations made by Massachusetts Secretary of State William Galvin in its marketing of auction-rate securities in a filing that said statements made to its clients "were not false or misleading at the time they were made."

Galvin suedUBS Securities and UBS Financial Services last month for allegedly selling retail investors auction-rate paper as "liquid, safe, money-market" at a time when the auctions would have failed without support from dealers.

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