A Decade-Long Battle: Tom Hayes Sues UBS for $400 Million

Tom Hayes, a former trader linked to the Libor-rigging scandal, is suing UBS for over $400 million, alleging the bank made him the scapegoat to protect its senior management. Hayes claims the Swiss bank maliciously prosecuted him, resulting in emotional and physical harm. His conviction was overturned in July.

Tom Hayes, once at the center of the infamous global Libor-rigging scandal, has initiated a massive legal battle against his former employer, UBS, demanding over $400 million in damages. Hayes, whose conviction was annulled in July, argues that UBS painted him as the "evil mastermind" to deflect blame and protect higher-ups.

Within a complaint filed in Connecticut, Hayes accused UBS of orchestrating a narrative that pinpointed him as the architect of a scheme to manipulate Libor rates. This allegation kept the focus off UBS's senior management even as the bank settled regulatory charges in late 2012 by disbursing $1.5 billion. At the same time, Hayes faced criminal charges.

The complaint highlights how UBS allegedly managed the narrative like a theater production, casting Hayes as the villain. Hayes, 46, claims this ruined his reputation, career, and well-being. His conviction, initially resulting in an 11-year jail term, was overturned following errors identified by the UK Supreme Court.

(With inputs from agencies.)