UBS does not need to pay €12m in damages to a client to whom it sold an investment in Lehman Brothers' structured bonds, said the Court of First Instance No 6 in Marbella. The lawsuit is the biggest Lehman-related lawsuit in Spain.
The court ruling declared that the client 'has not shown the occurrence of any alleged failings' by the Swiss bank.
The plaintiff was a client of the UBS private banking office in Marbella, who had invested all the profits from the sale of land into Lehman Brothers bonds. The customer lost his entire investment with the bankruptcy of Lehman Brothers on 15 September 2008.
The judge Estefania Zapico found that the products sold by UBS to the client were in line with his risk profile. She added that UBS provided all the necessary information needed for the client to understand what he was acquiring.
UBS's exposure to Lehman Brothers amounts to €212m in total ($300m) across its distribution network spanning more than 50 countries.
Another Lehman-related legal claim in Spanish courts was filed against Citibank by 597 affected customers. The conflict was resolved as part of a compensation package worth €42.5m offered by the US bank.
As previously reported, last March the Court of First Instance No 87 in Madrid ordered Bankinter to compensate 72 class action plaintiffs who are claiming €10.2m in relation to investments in Lehman-backed products made via the bank. The compensation fee has not yet been agreed upon.