Swiss private bank Julius Baer has agreed to pay CHF150m ($162m) to resolve a dispute over assets with German agency Bundesanstalt für vereinigungsbedingte Sonderaufgaben (BvS).
In a statement, the bank said: “On 27 August 2020, the Swiss Federal Supreme Court confirmed this decision as the final ruling in this matter.
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“Following this final ruling, Julius Baer has to pay approx. CHF 150 million (including accrued interest) to BvS, an amount fully covered by a corresponding provision booked in December 2019.”
Background
The dispute dates back to 2005 when Julius Baer took over Bank Cantrade through its acquisition of Bank Ehinger & Armand von Ernst from UBS.
In September 2014, BvS filed a lawsuit against Julius Baer as the successor of Cantrade.
The German agency sought CHF97m as well as accrued interest since 1994.
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By GlobalDataThe agency claimed that it should be able to claim for alleged unauthorised withdrawals from 1990 to 1992 from a Cantrade account of a foreign trade company in Germany.
In 2018, an appeals court in Zurich ruled in favour of Julius Baer in the matter.
However, last year, it was forced to re-evaluate the decision following an order of Switzerland’s highest court.
In December last year, the Zurich Court of Appeal ordered Julius Baer to pay CHF97m along with accrued interest in the case.
Julius Baer said: “As previously disclosed, UBS AG was notified of the claims by the BvS under the terms of the 2005 transaction agreement with regard to representations and warranties granted in respect of the acquired entities.
“In view of the final ruling, Julius Baer will pursue such notification further.”
Other legal issues
Julius Baer has been embroiled in several legal tussles lately.
The bank is currently in advanced talks with the US Department of Justice (DOJ) over a double-digit million US dollar settlement linked to world soccer federation FIFA.
This January, the Swiss bank faced a renewed lawsuit for €335m with 5% interest by the liquidator of a Lithuanian corporation.
In 2019, Julius Baer closed a 2016 deferred prosecution agreement (DPA) with the DOJ over helping Americans dodge taxes.
