A prominent Australian businessman is suing UBS Wealth Management over multi-billion dollar losses sustained during the financial turmoil, according to media reports.

The action is being taken against UBS Wealth Management Australia by Stefan Ackerie, of Queensland, according to a statement lodged in the Supreme Court in Brisbane, reports said.

UBS reportedly contests the claim as being without merit.

Ackerie has accused UBS Wealth Management Australia of failing to meet its obligations to advise and warn him of the risks associated with a $4 million share investment and an associated $5 million margin loan. Mr Ackerie also alleges UBS delayed closing his portfolio and margin loan, which formed a high-risk investment strategy, contrary to his instructions.

Since the market slide of 2008, there have been a number of lawsuits by high net worth investors against banks and other institutions, such as over the sale of auction rate securities (ARS) in the US, or in connection with losses sustained due to investments into the Ponzi fraud of Bernard Madoff. Litigation risk is a risk that many private banks needed to be more aware of in times of economic stress, according to the industry more than two years ago. (To view that article, click here).