(Bloomberg) -- UBS Group AG will stand trial in France after settlement talks broke down over the penalty amount in a tax-fraud allegation case that forced the bank to post a 1.1 billion-euro ($1.2 billion) bond to cover any potential fines three years ago.
UBS said Monday that it had been informed it will have to answer charges in court alongside its French unit.
“UBS has made clear that the bank disagrees with the allegations, assumptions and legal interpretations being made,” the bank said in a statement. “We will continue to strongly defend ourselves and look forward to a fair proceeding.”
UBS had been pushing to settle the French investigation for less than the 300 million euros it paid to resolve a similar issue in Germany in 2014 as the wealth-management market is smaller in France, people familiar with the matter said earlier this month. France’s financial prosecutor aimed to get UBS to pay 1.1 billion euros -- the same amount as the bond -- to settle the case without admitting guilt, according to a person familiar with the matter.
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