Swiss banking giant UBS AG has asked a Connecticut state court to dismiss a $400 million lawsuit filed by former trader Tom Hayes, who claims the bank scapegoated him in connection with the Libor-rigging scandal. The bank argued Monday that the case has no meaningful connection to Connecticut and is an attempt to punish UBS for cooperating with prosecutors.
“Hayes’s decision to file here despite being an English citizen who was tried and convicted in England is quintessential forum shopping,” UBS said in its motion.
Hayes’ lawsuit alleges that UBS portrayed him as the “evil mastermind” behind Libor misconduct to deflect attention from senior management. The suit claims the bank “intentionally directed the destruction of an innocent man’s life for its own selfish reasons” and seeks at least $400 million, including reimbursement of Hayes’ criminal defense costs, which exceed $1 million.
In its dismissal motion, UBS invoked Connecticut’s anti-SLAPP law, which protects entities from lawsuits intended to intimidate or retaliate. “Hayes cannot show his prosecution was baseless, initiated at the bank’s behest or driven by malice, so his suit’s core claim against UBS cannot clear the law’s early dismissal bar,” the bank argued.
“Hayes alleges that UBS cooperated in the relevant government investigations hoping to obtain leniency,” UBS added. “Even if that were true, a potential co-defendant’s decision to cooperate with law enforcement is not the sort of intent to harm necessary to allege malice under English or New York law.”
Hayes’ attorney, Jonathan Harris of Harris St. Laurent & Wechsler LLP, pushed back, calling the motion “an expected attempt to avoid having discovery into the facts and having the case heard on its merits. We look forward to seeing them in court.”
Hayes, who worked for UBS in Tokyo from 2006 to 2009, became the first individual convicted in connection with the Libor scandal. Charged in the U.K. with conspiracy to defraud, he was found guilty in 2015 and sentenced to over a decade in prison. U.S. prosecutors later dropped similar charges in New York after appellate court rulings. The U.K. Supreme Court overturned Hayes’ conviction last year, citing “inaccurate and unfair” jury instructions, though acknowledging evidence could support a guilty verdict.
UBS argued the lawsuit’s allegations are “too conclusory and vague” and that Hayes cannot show the bank misled prosecutors. The motion noted that Libor investigations spanned multiple institutions, “scores” of witness interviews, and millions of documents. “UBS could not possibly have controlled the direction of governmental entities’ investigations or the evidence other institutions provided,” the bank said.
Hayes maintains his innocence, with supporters claiming he was unfairly singled out for actions common across the industry. The suit names UBS and two U.S. units as defendants and asserts claims for malicious prosecution and indemnification.
UBS is represented by Kevin P. Broughel and Peter G. Wilson of Katten Muchin Rosenman LLP. Hayes is represented by Jonathan Harris, John Millson, Tina Lapsia, and Robert M. Frost Jr.
The case is Hayes v. UBS AG et al., case number CV25-6076766, in the Stamford-Norwalk Judicial District of the Connecticut Superior Court.
