UBS lost a U.K. lawsuit over derivatives sold to Kommunale Wasserwerke Leipzig GmbH when a judge found the bank’s relationship with a firm advising the German water utility led to a conflict of interest.
The consultants, Juergen Blatz and Berthold Senf, were convicted in 2011 by a German court of bribing a KWL executive in relation to the deal.
'Neither UBS nor KWL emerges with credit from this saga,' Males wrote in a 325-page decision. 'For UBS it has been a case study in how not to conduct investment banking in an honest and fair way.'
UBS argued KWL owed about $140 million in a trial ending in July that saw mud-slinging from both sides including accounts of corruption, bribery and a party with strippers.
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