Legal
UBS May Face Fresh Costly Distraction From Madoff Litigation - Lawyer

Complex litigation arising from $1.7 billion of losses linked to convicted Ponzi fraudster Bernard Madoff threatens further difficulties for UBS, which has recently faced a costly US tax case and massive credit losses, Reuters said, quoting a lawyer acting for Madoff-linked investors.
The threat is still looming of compensation to investors who lost out to Mr Madoff via two Luxembourg funds set up by UBS, the report said.
UBS did not immediately respond to WealthBriefing's enquiries about the matter.
About a year after the Madoff's Ponzi scheme was uncovered, a Luxembourg court will determine whether investors can bring direct claims against UBS, which acted as custodian but not as investment manager of the LuxInvest and LuxAlpha funds.
"Under Luxembourg law, investors can bring claims against a depositary bank directly...if it fails to carry out its tasks," Isabelle Wekstein, a lawyer representing investors who want compensation from UBS in Luxembourg, was quoted by the news service as saying.
The funds, created in 2002 and 2004 respectively, were investing in Madoff products. Many investors were rich French individuals recruited by Madoff through a Ponzi scheme while holidaying on the French Riviera or skiing in Switzerland.
A first ruling involving a small group of investors, expected early next year, could set a precedent for other investors in some 100 cases.