Bloomberg reports that the watchmaker is suing UBS to recover about $34m, including interest, in losses on 'absolute-return' investments made in 2009 that UBS said were low-risk in any market environment.
Swatch needed advice from UBS because it hadn’t invested in an absolute-return product before, Alexander Schwartz, a lawyer representing the company, said at a hearing in Zurich. UBS never told Swatch to sell its stake in the fund in question and should therefore be held liable, he said.
'Only the defendant had an obligation to know what they contained and to warn the buyer of the danger of rotten meat', Schwartz said, comparing the investment products to sausage with meat that’s gone bad.
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