Julius Baer said it welcomed resolution of the dispute, clearing up another legacy issue and allowing the lender to improve its risk profile.

Julius Baer has closed a legacy litigation matter with a settlement worth €105 million ($109 million).

The underlying facts of the dispute date back more than 10 years, the firm said in a statement last week. About half of the settlement amount is covered by pre-existing provisions, it added.

In its statement, Julius Baer said it resolved a claim by the liquidator of a Lithuanian corporation filed with the Court of First Instance in Geneva in 2019. The claim was for a total amount in dispute of €335 million plus 5 per cent interest per annum since December 2011. It related to the alleged use of the financial system for the embezzlement of assets at a Lithuanian corporation by two of its executives – matters dating back more than 10 years, the Zurich-listed bank said.

Julius Baer will cover about half of the settlement of €105 million with existing provisions. The remainder will be charged against the 2022 first half-year financial results.

The bank added that it welcomed the resolution of this dispute, which it said marks a step in the group’s process of resolving legacy matters and enhancing its risk profile.