Tom Hayes, the former trader whose Libor conviction was quashed by the UK Supreme Court, alleges that UBS’ internal investigation was stacked against him from the start. The probe was code‑named "Project Chocolate" after his trading‑floor nickname "Tommy Chocolate," which his lawyers say shows the bank pre‑determined him as the target.

Hayes is suing UBS for at least $400mn in a Connecticut court, claiming malicious prosecution. UBS seeks dismissal, arguing the case belongs in England or New York and invoking Connecticut’s anti‑SLAPP law to block the claims.

Internal documents reveal the 2011 investigation, run by Gibson Dunn, was launched under pressure from US authorities. Hayes contends the bank made him a scapegoat to protect senior executives and secure favourable regulator treatment. UBS maintains project names are chosen randomly to avoid any link to the subject matter.

The Libor scandal cost banks billions in fines. Hayes served five and a half years in jail before his conviction was overturned, though the court stopped short of full exoneration.