Former UBS Trader Files $400M Malicious Prosecution Suit

November 6, 2025

A former UBS trader who was exonerated earlier this year of all allegations involving Libor market manipulation has sued his former employer for $400 million. Represented by HSW, Hayes claims UBS scapegoated him as the “evil mastermind” behind its Libor scandal, even though he acted under the direction of senior management and in line with industry practice.

"UBS knew its disclosures were misleading," the complaint states. "It knew that Hayes had acted at the direction of UBS senior management, consistent with UBS policy and in line with common practice in the industry. Yet, to save itself from punishment by global authorities who had retroactively decided that ordinary and accepted conduct with respect to Libor submissions was 'illegal,' UBS offered Hayes up on a silver platter."

The case has drawn coverage from major outlets including Wall Street Journal, Bloomberg, Reuters, the BBC, the Financial Times, The Guardian, Law360 and others.

HSW’s team is led by managing partner Jonathan Harris, with counsel John Millson, associate Tina Lapsia, and strategist Dr. Monica Delgado, joined by co-counsel Robert M. Frost Jr. of Frost Law LLC.

In 2022, HSW filed a similar lawsuit on behalf of Matthew Connolly against Deutsche Bank alleging wrongful Libor prosecution. The firm secured a settlement for Mr. Connolly in 2024.