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UBS Loses KWL Case as Judge Says Bank Wasn’t Honest, Fair

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UBS AG lost a U.K. lawsuit over derivatives sold to Kommunale Wasserwerke Leipzig GmbH, with a judge criticizing a “corrupt” deal between a “maverick” bank employee and consultants advising the German water utility.

Judge Stephen Males said former UBS employee Steven Bracy was aware of a conflict of interest and knew the advisers at a Swiss consulting firm were dishonest. 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.