COViSAL # 224 - Official update on the lawsuit against UBP in Switzerland
Dear friend:
I
have received direct communication from the Joint Liquidators of
Stanford International Bank, regarding the litigation they are pursuing
against the Swiss bank Union Bancaire Privée (UBP), formerly Société
Générale.
As you know,
this case currently represents the last substantial recovery target for
international creditors of the Stanford fraud. The Liquidators are
claiming approximately US$ 700 million for performance or damages,
alleging that the bank facilitated Allen Stanford's Ponzi scheme.
Therefore, I want to share with you the most recent information on its
status.
Current status of the litigation
The
process continues its course before the courts of Geneva, Switzerland.
Currently, the case is in a phase of resolving preliminary issues.
The defendant bank (UBP) raised two procedural objections seeking to prevent the case from going to trial:
•
Res Judicata: They argue that the US$ 157 million settlement reached in
the United States in 2023 should protect them from being sued again for
the same facts.
• Standing: They challenge the right of the Antiguan Liquidators to bring this lawsuit before the Swiss courts.
The
Geneva court determined that these two issues must be resolved before
entering into the merits of the case, that is, before determining
whether the bank facilitated Allen Stanford's Ponzi scheme.
Recent procedural developments
Both
parties have completed the exchange of written arguments. The court has
set a schedule for the submission of final briefs on these preliminary
issues.
📅 Key date: The delivery of these final documents is scheduled for the end of March 2026.
Once
this deadline is met, the judge will deliberate and issue their
decision on whether the case can proceed or whether, on the contrary, it
must be dismissed by virtue of the objections raised by the bank.
On procedural timelines
The
Liquidators warn me that, in this type of proceeding in Switzerland,
courts do not usually offer a fixed schedule for issuing their
judgments. This means that, although the briefs are submitted at the end
of March, the decision could take several months.
With
the caution that these cases require, I estimate that we could have a
resolution towards the second half of 2026, always subject to the
court's timelines.
The importance of this case
The
Liquidators have been explicit: this lawsuit against UBP is the last
substantial recovery target they are pursuing. There are no other major
litigations ongoing. What happens in Switzerland will define the future
of the liquidation and the time when this process can be concluded.
•
If the preliminary issues are resolved in our favor: The bank will be
in an uncomfortable position, facing the prospect of a public trial for
US$ 700 million where internal documents could be exposed. In that
scenario, I consider it likely that a window for negotiation will open
or, in the best case, for a favorable judgment.
•
If the bank's objections succeed: The case would be dismissed, and with
it would go the last great opportunity for recovery for international
creditors.
Next steps
We
remain in a phase of active waiting. The case is still alive, there is
judicial movement and concrete dates. As long as that happens, there are
possibilities. The Liquidators are fighting firmly and, from COViSAL, I
will continue to monitor every step personally.
As soon as the court rules on these preliminary issues, I will communicate it immediately.
We move forward with faith and perseverance.
Regards,
Jaime
