UBS Fails in Legal Bid to Interpret 1999 Holocaust Asset Agreement

US Judge Rejects UBS Request for Clarification on Nazi Settlement

UBS Group AG has failed to persuade a US judge to clarify a 1999 legal settlement regarding claims against Swiss banks over their handling of Nazi victims during the Holocaust. US District Judge Edward Korman turned aside the bank's request to define more clearly the $1.25 billion accord in which UBS and other banks expected protection from all new financial claims.

The dispute is ongoing in federal court in Brooklyn, New York, between UBS and the Simon Wiesenthal Center, a US-based group known for its pursuit of Nazis. UBS had argued that the 1990s accord in which the company and other Swiss banks settled the claims of Nazi victims covered it from any potential further liability — known or unknown at the time. UBS acquired Credit Suisse in 2023, a move that may have implications for the ongoing case.

Judge Korman heard UBS's request for clarification in March, with the bank seeking to block the Wiesenthal center from suing for more money and "promote any public controversy" in a way that is inconsistent with the settlement. Any new claims related to Nazi-linked accounts could expose the bank to billions of dollars in liability.

Read also: Kumar Mangalam Birla to Address Concluding Function of RSS Training Camp

In a ruling on Tuesday, Judge Korman said that because there is no lawsuit or motion before him, he couldn’t issue an advisory opinion. UBS did not immediately comment on the ruling, but the bank previously discussed the controversy in a recent question and answer on its website.