Banks – UBS faces litigation in the UK – Economy

UBS is threatened with a lawsuit in Great Britain with a value of 500 million dollars. An appeals court in London on Wednesday rejected an application by the major Swiss bank to dismiss the lawsuit brought by an exiled Chinese businessman. The London branch of UBS is being sued by Guo Wengui and his firm Ace Decade over an indirect investment in Chinese brokerage firm Haitong Securities. Guo alleges that he and Ace Decade lost almost the entire $500 million investment after UBS forced shares to be sold during a market slump in July 2015. UBS had argued before the Court of Appeal that Guo and Ace Decade can only file their lawsuit in Switzerland. This argument had already been rejected by a lower court last year. “The claims undoubtedly arose from the business of UBS London,” said Judge Geoffrey Vos in his written judgment. “UBS London was instrumental in the events leading up to both the claims and the alleged losses.” UBS declined to comment.