Julius Baer has been ordered by the Zurich Court of Appeal to pay CHF97m ($98.2m) along with accrued interest related to alleged missing funds from an account in 1990s.
In the case, the court sustained the demands made by the German federal body Bundesanstalt für vereinigungsbedingte Sonderaufgaben (BvS) against Bank Julius Baer.
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The issue stretches back to 2005 when the Swiss private bank took over Bank Cantrade. Julius Baer picked up Cantrade as part of its acquisition of Bank Ehinger & Armand von Ernst from UBS.
Later in 2014, BvS initiated a lawsuit claiming reimbursement for ‘unauthorised withdrawals’ from a foreign trade company account in Cantrade. The alleged transactions were made between 1990 and 1992.
The foreign trade company, mentioned in the lawsuit, has its roots in erstwhile East Germany.
Originally, the Zurich Court gave its ruling in favour of Julius Baer. However, it was forced to re-assess the decision following an order of Swiss Federal Supreme Court earlier this year.
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By GlobalDataIn a statement, Julius Baer said that it will appeal against the latest ruling in the Swiss Federal Supreme Court.
The private bank has also set aside CHF153m to cover the BvS claims.
Julius Baer also said that the claims made by BvS were notified to UBS and it will seek compensation for any finally awarded amount.
