Client Affairs

Julius Baer Reaches Settlement Over Legacy Litigation Case

Amanda Cheesley Deputy Editor London 5 July 2022

Julius Baer Reaches Settlement Over Legacy Litigation Case

Julius Baer said it welcomed resolution of the dispute, clearing up another legacy issue and allowing the lender to improve its risk profile.

Julius Baer has closed a legacy litigation matter with a settlement worth €105 million ($109 million).

The underlying facts of the dispute date back more than 10 years, the firm said in a statement last week. About half of the settlement amount is covered by pre-existing provisions, it added.

In its statement, Julius Baer said it resolved a claim by the liquidator of a Lithuanian corporation filed with the Court of First Instance in Geneva in 2019. The claim was for a total amount in dispute of €335 million plus 5 per cent interest per annum since December 2011. It related to the alleged use of the financial system for the embezzlement of assets at a Lithuanian corporation by two of its executives – matters dating back more than 10 years, the Zurich-listed bank said.

Julius Baer will cover about half of the settlement of €105 million with existing provisions. The remainder will be charged against the 2022 first half-year financial results.

The bank added that it welcomed the resolution of this dispute, which it said marks a step in the group’s process of resolving legacy matters and enhancing its risk profile.

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