UBS Loses Appeal to Halt London Lawsuit
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UBS has lost an appeal to throw out a lawsuit by an exiled Chinese businessman over an allegedly forced share sale by the Swiss bank’s London branch.
A London court of appeal has dismissed UBS’s latest attempt to throw out a $500 million lawsuit by exiled Chinese businessman Guo Wengui and his firm Ace Decade.
According to Guo, he and Ace Decade allegedly lost $500 million after UBS forced a sale of an indirect equity investment in Chinese brokerage Haitong Securities during a market downturn in July 2015.
Last month, UBS argued in the appeal court that the lawsuit would only be valid in Switzerland despite involvement by the London branch. This argument was previously rejected by a lower court in 2022.
The claims undoubtedly arose out of UBS London’s operations. UBS London significantly participated in the events that have given rise both to the claim and the los ns claimed.
Questions & Answers
Q.What is the core allegation made by the Chinese businessman against UBS?
What is the core allegation made by the Chinese businessman against UBS?
Guo Wengui and his firm Ace Decade allege they lost $500 million because UBS forced a sale of their indirect equity investment in Haitong Securities. This forced sale occurred during a market downturn in July 2015.
Q.Which specific UBS entity is involved in the lawsuit?
Which specific UBS entity is involved in the lawsuit?
The lawsuit specifically involves UBS's London branch. The London court noted that UBS London significantly participated in the events leading to the claim and the alleged losses.
Q.What was UBS's main argument in the appeal that was dismissed?
What was UBS's main argument in the appeal that was dismissed?
UBS argued that the lawsuit should only be valid in Switzerland, despite the involvement of its London branch. This argument had previously been rejected by a lower court in 2022.
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