Lawyers representing disgruntled UBS shareholders are threatening to sue the bank’s former executives for alleged malpractices that led to massive losses.
Former UBS chairman Marcel Ospel heads a list of targets for potential lawsuits following the bank’s fall from grace. The chances of legal action were boosted in April when shareholders voted against absolving 2007 executives from blame.
UBS was Europe’s worst victim of the subprime mortgage collapse, writing down some $50 billion (SFr53 billion) while share prices crashed from a high of SFr75 to a low of SFr8 in the space of two years.
The dramatic collapse led to Ospel and many other executives either stepping down or being sacked. Despite many calls to bring these former executives to account, UBS said in December last year that it would not be bringing any legal charges.
