Finance
UBS Loses Bid to Limit Liability for Nazi-Linked Crimes, US Judge's Ruling Shows
Published by Global Banking & Finance Review®
Posted on April 7, 2026
2 min readLast updated: April 7, 2026
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A U.S. judge rejected UBS’s request for a legal shield delaying liability from its 1999 $1.25 billion Holocaust settlement, allowing potential claims tied to newly uncovered Nazi-linked accounts to proceed as the agreement stands
UBS loses bid to limit liability for Nazi-linked crimes, US judge's ruling shows
US Judge Rejects UBS Request on Holocaust Settlement
(In first paragraph makes clear UBS sought to clarify the 1999 settlement, not modify it)
By Jonathan Stempel
Background of the 1999 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 haven't been filed.
"Until a genuine case or controversy arises that requires judicial interpretation of its terms, the agreement will continue to speak for itself," Korman wrote.
Responses from UBS and Advocacy Groups
UBS did not immediately respond to requests for comment.
The Simon Wiesenthal Center, a Jewish human rights group, had argued that UBS's proposal would improperly expand the 1999 settlement to encompass newly uncovered facts about banks' dealings with the Third Reich. Its lawyers did not immediately respond to requests for comment.
Recent Developments and Context
New Investigations and Discoveries
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.
UBS Acquisition of Credit Suisse
UBS bought Credit Suisse in a Swiss government-arranged emergency takeover in 2023.
(Reporting by Jonathan Stempel in New YorkEditing by Bill Berkrot)
Key Takeaways
- •Judge Edward Korman denied UBS’s bid for a sweeping advisory ruling, stating that the 1999 settlement remains binding until an actual dispute arises, rejecting coverage for hypothetical future claims
- •The Simon Wiesenthal Center opposed UBS’s attempt to retroactively extend the settlement to include newly discovered Nazi-linked accounts, supporting victims’ rights to pursue redress
- •The 1999 settlement, orchestrated after the Volcker Commission’s investigation, resolved claims by Holocaust victims based on dormant accounts—but recent probes (e.g. uncovering some 890 potential Nazi-linked accounts) suggest deeper exposure and renewed scrutiny
Frequently Asked Questions about UBS loses bid to limit liability for Nazi-linked crimes, US judge's ruling shows
1What did the US judge rule regarding UBS's liability for Nazi-linked crimes?
The judge rejected UBS's bid to modify the 1999 settlement, denying the bank protection from future claims about Nazi-linked accounts.
2What was the value of the original Swiss banks' Holocaust settlement?
The 1999 settlement amounted to $1.25 billion, distributed to over 458,000 Nazi victims and families.
3Why did UBS seek to limit its liability now?
UBS sought to limit liability after new findings from a 2020 investigation revealed additional Nazi-linked accounts involving Credit Suisse.
4What role did the Simon Wiesenthal Center play in this case?
The Simon Wiesenthal Center opposed UBS's proposal, arguing it would improperly expand the initial settlement to cover newly uncovered facts.
5What recent changes occurred with UBS and Credit Suisse?
UBS acquired Credit Suisse in a Swiss government-arranged emergency takeover in 2023.
