By Jonathan Stempel NEW YORK, April 7 (Reuters) - A U.S. judge on Tuesday rejected UBS' bid to modify a $1.25 billion settlement from 1999 of Holocaust-related litigation against Swiss banks by
UBS loses bid to limit liability for Nazi-linked crimes, US judge's ruling shows
US Judge Rejects UBS Request in Holocaust-Related Settlement Case
By Jonathan Stempel
Background of the Settlement
NEW YORK, April 7 (Reuters) - A U.S. judge on Tuesday rejected UBS' bid to clarify a $1.25 billion settlement from 1999 of Holocaust-related litigation against Swiss banks by shielding it from claims based on new revelations about Nazi-linked accounts.
Judge Korman's Ruling
U.S. District Judge Edward Korman in Brooklyn, New York, said UBS was seeking an advisory opinion protecting it from "hypothetical" lawsuits that have not been filed.
"Until a genuine case or controversy arises that requires judicial interpretation of its terms, the agreement will continue to speak for itself," wrote Korman, who oversaw the 1999 settlement.
Arguments from the Simon Wiesenthal Center
The Simon Wiesenthal Center, a Jewish human rights group, had argued that UBS' proposal would improperly expand the settlement to encompass newly uncovered facts about banks' dealings with the Third Reich.
Recent Investigations and New Revelations
Credit Suisse Investigation
UBS sought Korman's intervention after an investigation commissioned in 2020 by the former Credit Suisse uncovered additional ties between that bank, its predecessors and Nazis, including 890 accounts with potential Nazi links.
Distribution of Settlement Funds
The $1.25 billion was paid by UBS and Credit Suisse and distributed to more than 458,000 Nazi victims and their families.
Responses from Involved Parties
UBS Statement
In a statement, UBS said: “Nothing in the judge’s opinion contradicts our reading of the 1999 settlement agreement.”
Simon Wiesenthal Center's Response
Lawyers for the Simon Wiesenthal Center did not immediately respond to requests for comment.
UBS and Credit Suisse Merger
Emergency Takeover
UBS bought Credit Suisse in a Swiss government-arranged emergency takeover in 2023.
Reporting Credits
(Reporting by Jonathan Stempel in New YorkEditing by Bill Berkrot, Rod Nickel)
