Now this has got to be a first!
In Thomas v. UBS, thousands of Americans with UBS accounts sued for the penalties, interest, and costs they incurred from their scrape with the IRS.
Forbes reports that they also sued for hundreds of millions in profits they claim UBS reaped by inducing them to maintain UBS accounts. Not mincing words, Judge Posner said the plaintiffs were tax cheats.
However, Posner noted that the plaintiffs did not argue they received tax advice from UBS. Instead, they argued UBS should have prevented them from violating the law. As Judge Posner put it:
'This is like suing one’s parents to recover tax penalties one has paid, on the ground that the parents had failed to bring one up to be an honest person who would not evade taxes and so would not subject himself to penalties'.
In the meantime, Reuters reports that a U.S. appeals court refused Thursday to revive a lawsuit against UBS by U.S. victims of Hamas and Hezbollah attacks in Israel who claimed the bank aided international terrorism.
The 2nd U.S. Circuit Court of Appeals in New York said the plaintiffs could not obtain relief against the Swiss bank on their claims. However, it also ruled a trial judge was wrong in holding that the victims lacked the legal standing to bring the case under federal terrorism laws.