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By Sam Tobin
LONDON (Reuters) – UBS faces a $500 million lawsuit in London introduced by an exiled Chinese language businessman after an enchantment court docket on Wednesday rejected the Swiss financial institution’s newest try and have the case thrown out.
The London department of Switzerland’s largest financial institution is being sued by Guo Wengui, a former billionaire also referred to as Kwok Ho Wan, and his firm Ace Decade over an oblique funding in Chinese language brokerage Haitong Securities.
Guo has alleged that he and Ace Decade misplaced nearly a whole $500 million funding after UBS compelled a sale of so-called H-shares throughout a market rout in July 2015.
UBS had argued at London’s Court docket of Enchantment final month that Guo and Ace Decade can solely carry their lawsuit towards the financial institution in Switzerland, an argument rejected by a decrease court docket final 12 months.
However UBS’s enchantment was dismissed in a written ruling on Wednesday. UBS had beforehand instructed a decrease court docket that the claims are denied of their entirety.
UBS declined to touch upon Wednesday.
Legal professionals representing Guo and Ace Decade didn’t instantly reply to a request for remark.
Guo, who filed for particular person chapter safety in the USA in February 2022, was not represented finally month’s listening to. His U.S. chapter trustee wrote to the court docket to say he took a impartial place on the enchantment, the court docket was instructed.
UBS’s lawyer David Quest had requested the Court docket of Enchantment to overturn a decrease court docket ruling that the case may proceed in London, saying that the funding was made and the recommendation given in China.
Decide Geoffrey Vos stated within the written ruling on Wednesday that “the harm brought on to Ace Decade and (Guo) occurred in London when the H-shares … had been bought by UBS London”.
“The claims undoubtedly arose out of UBS London’s operations,” he stated within the ruling. “UBS London considerably participated within the occasions which have given rise each to the declare and to the loss claimed.”
(Reporting by Sam Tobin; extra reporting by Kirstin Ridley. Enhancing by Jane Merriman)