UBS AG has reached an agreement with Sumitomo Corporation to settle the litigation brought by Sumitomo in 1999 due to litigation over a copper trading scandal.

Under the settlement, with no admission of wrongdoing, UBS has agreed to pay Sumitomo 10 billion Yen (about US$86 million). “With the agreement, all claims brought by Sumitomo Corporation in the litigation have been settled. The settlement will be wholly reflected in provisions in UBS Investment Bank’s first quarter results,” UBS said.

The case between UBS and Sumitomo involved certain copper-linked transactions in which the former UBS participated from 1995 to 1996. Back then, Sumitomo’s head copper trader was found to have concealed massive trading losses. Bloomberg reported that Sumitomo sued Chase Manhattan Bank and UBS for US$761 million, alleging they helped finance unauthorized copper trades.