Apr 30, 2014
Swatch loses suit against UBS over investments
Apr 30, 2014
Swatch Group, the world's leading watchmaker, on Tuesday lost a lawsuit against Switzerland's largest bank, whose investment advice it says cost it millions of dollars.
A court in Zurich threw out Swatch's demand for UBS to repay 24.8 million Swiss francs ($28.1 million, 20.3 million euros), which the watchmaker lost on UBS fund investments.
Swatch Group invested in the funds in 2007, shortly before they plummeted in value during the 2008 financial crisis.
The group has accused the bank of giving it bad advice on its fund investments, but the court said in a statement that the global financial crisis had not been foreseeable in 2007.
The Zurich cantonal business court also pointed out that Swatch was a large-scale investor -- managing nearly 2.0 billion Swiss francs in investments -- and that the organisation had access to its own analysis services.
It said the watchmaking company had the final word on how its holdings were invested in its deal with UBS.
A spokeswoman said Swatch Group would appeal.
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