A U.S. judge has rejected UBS’ attempt to clarify a 1999, $1.25 billion settlement stemming from Holocaust-related litigation against Swiss banks. The ruling, handed down on Tuesday by U.S. District Judge Edward Korman in Brooklyn, New York, means the historic agreement will not be shielded from potential claims arising from new revelations about Nazi-linked accounts. Judge Korman stated that UBS was seeking an advisory opinion to protect itself from “hypothetical” lawsuits that have not yet been filed, emphasising that “Until a genuine case or controversy arises that requires judicial interpretation of its terms, the agreement will continue to speak for itself.”
UBS, a prominent global financial services company offering wealth management, asset management, and investment banking services, acquired rival Credit Suisse in an emergency takeover in 2023. The Swiss banking giant sought the court’s intervention following a significant 2020 investigation. This independent inquiry, commissioned by the former Credit Suisse, uncovered additional ties between that bank, its predecessors, and the Nazi regime, identifying 890 accounts with potential Nazi links that had not previously come to light. The original $1.25 billion settlement, which Judge Korman also oversaw in 1999, was paid jointly by UBS and Credit Suisse, and was distributed to more than 458,000 Nazi victims and their families.
The Simon Wiesenthal Center, a Jewish human rights group, had strongly opposed UBS’s proposal. The organisation argued that the bank’s request would improperly expand the scope of the nearly quarter-century-old settlement to encompass these newly discovered facts regarding banks’ dealings with the Third Reich, potentially precluding future claims. In response to the judge’s decision, UBS issued a statement affirming, “Nothing in the judge’s opinion contradicts our reading of the 1999 settlement agreement,” indicating its continued interpretation of the original terms.
