UBS Owes Nothing to U.S. ‘Tax Cheats’ Who Sued, Court Rules

UBS AG owes nothing to former U.S. clients who filed a “travesty” of a lawsuit against the Swiss bank over penalties and interest they paid to the Internal Revenue Service for offshore accounts, an appellate court ruled.

The lawsuit claimed that UBS, the largest Swiss bank, had a duty to inform three former clients that they had to declare their accounts to the IRS and pay any taxes owed. All three avoided prosecution by voluntarily disclosing their accounts to the IRS and paying back taxes, interest and a 20 percent penalty.