The Globe and Mail is bringing a private-equity class action against private-sector defendants in a bid to put pressure on a major investment bank to settle its corporate governance issues.
The company’s board of directors was rocked by the scandal that led to the ouster of former CEO Mike Duke in April 2016.
The investigation by the U.S. Justice Department has been ongoing for several years.
The class action lawsuit was filed Monday by former CFO of the UBS bank, Peter Lienhard, who alleges he was retaliated against after filing a whistleblower complaint.
The complaint claims Duke failed to report significant misconduct and mismanagement in the bank’s business practices, as well as in his own personal finances.
Duke also has admitted to taking $150,000 in cash bribes.
The lawsuit seeks damages for all victims, and for a declaration of a violation of the American Consumer Law.
Lienhard claims the bank has committed “a substantial number of violations of the laws of the United States and foreign jurisdictions.”
It also seeks unspecified punitive damages, in addition to a prohibition on future financial misdeeds.
The American Bankers Association, the trade group representing more than 40,000 U.K.-based financial firms, has called for Duke’s resignation.
The association said in a statement that it has been “satisfied that the company has taken the necessary steps to resolve the allegations, and that we have received no further reports of further misconduct.”