UBS of Switzerland said Friday it has reached an agreement with Sumitomo Corp. to settle the lawsuit brought by the Japanese trading house in 1999 in connection with copper-linked transactions.
Under the agreement to settle all claims in the litigation, UBS will pay 10 billion yen to Sumitomo without admitting any wrongdoing, the bank said in a statement obtained in Tokyo.
Sumitomo filed the lawsuit with the Tokyo District Court against the then Union Bank of Switzerland, UBS’ predecessor, seeking 27.9 billion yen in damages on the grounds that the bank had funded unauthorized copper trading by a then Sumitomo manager.
The manager had borrowed more than $250 million from the Union Bank of Switzerland, which merged with Swiss Bank in 1998 to create UBS.
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