The decade-old Libor-rigging scandal—one of the most notorious episodes in modern finance—has resurfaced with new legal repercussions.
Tom Hayes, a former UBS trader who was convicted in 2015 and later exonerated, has filed a $400 million lawsuit against Swiss banking giant UBS, accusing the bank of malicious prosecution and scapegoating.
Hayes Accuses UBS of Protecting Executives
In a complaint filed on October 23, 2025, Hayes alleges that UBS “maliciously prosecuted” him to protect senior executives from criminal liability during the original Libor investigation.
He claims the bank deliberately portrayed him as the “evil mastermind” behind the manipulation scheme to settle regulatory actions without exposing top leadership to prosecution.
UBS paid $1.5 billion in fines in 2012, resolving several investigations across the U.S., UK, and Switzerland, but avoided direct criminal charges against its senior management.
Supreme Court Ruling Reopens the Case
The lawsuit follows a landmark ruling in July 2025, when the UK Supreme Court overturned Hayes’ conviction. The court found that the original trial judge made a significant legal error, instructing jurors that banks could not take their own commercial interests into account when setting Libor submissions—an interpretation the high court later ruled was “legally unsound” and “undermined the fairness” of the trial.
Hayes, now 46 years old, served more than five years of an 11-year prison sentence before his release. His new legal action seeks punitive damages for the destruction of his career and the emotional and physical harm he suffered due to the prosecution.
UBS Declines Comment as Legal Risks Resurface
UBS has declined to comment on the new lawsuit. However, the case underscores how the legal and reputational fallout from the Libor scandal continues to haunt major global financial institutions more than a decade later.
At its peak, the London Interbank Offered Rate (Libor) served as the benchmark for over $300 trillion in global financial products, from mortgages to derivatives. The rate was officially phased out in 2022 following years of reforms and over $9 billion in cumulative fines levied against multiple banks.
Key Legal and Financial Takeaways
Legacy: The Libor transition to alternative rates marks the end of an era, but its consequences remain far from over.
Lawsuit Value: $400 million claim filed by Tom Hayes against UBS.
Legal Basis: Alleged malicious prosecution and reputational damage.
Context: Follows UK Supreme Court’s 2025 ruling overturning Hayes’ conviction.
Industry Impact: Reopens scrutiny on banks’ past conduct and accountability in benchmark manipulation.
- Plaintiff: Tom Hayes, former UBS and Citigroup trader.
- Defendant: UBS (Swiss Bank).
- Claim Amount: $400 million, plus punitive damages.
- Core Allegation: Malicious prosecution and scapegoating to protect senior executives.
- Context: Follows the UK Supreme Court overturning Hayes’ Libor conviction in July 2025.
Social Media:
$400 MILLION LAWSUIT HITS UBS!
Exonerated Libor trader Tom Hayes is suing UBS, accusing the bank of “maliciously prosecuting” him to protect senior
executives during the Libor scandal cleanup. This massive legal challenge follows the overturning of his conviction this
year.
