UBS will cough up $68 million for its fraudulent conduct involving the manipulation of the London Interbank Offered Rate.

LIBOR is a benchmark interest rate that affects financial instruments worth trillions of dollars and has a far-reaching impact on global markets and consumers.

Led by the New York Attorney General’s Office, the case involved 40 states including Massachusetts.

“Manipulative or fraudulent conduct that undermines the integrity of our financial markets will not be tolerated,” New York Attorney General Barbara D. Underwood said in a statement. “Our office is committed to holding financial institutions accountable for their misconduct.”

The attorneys general whose states were party to the suit allege that UBS misrepresented the integrity of the LIBOR benchmark by concealing, misrepresenting and failing to disclose that UBS at times made U.S. dollar LIBOR submissions to avoid negative publicity and protect the reputation of the bank, and that UBS made Japanese yen LIBOR submissions to benefit its derivative trading positions.

As a result of its fraudulent conduct, UBS made millions in unjust gains when government entities and not-for-profit organizations entered into swaps and other financial instruments with UBS without knowing that UBS and other banks on the USD-LIBOR-setting panel were manipulating their LIBOR submissions.

Governmental and not-for-profit entities with LIBOR-linked swaps and other financial instruments with UBS will be notified if they are eligible to receive a distribution from the settlement fund.

UBS is the fourth of several USD-LIBOR-setting panel banks under investigation by the state attorneys general to resolve the claims against it. With the UBS settlement, the states have collected $488 million in payments from the four banks, almost all of which will be distributed to state and local government entities and nonprofits that have been harmed by these banks’ wrongful conduct. Pursuant to the settlement agreement, UBS will continue to cooperate with the states’ ongoing investigation; such cooperation helps facilitate civil enforcement efforts, including the distribution of funds to victims of the offense.