Media Release


Fine against Tornos Holding AG becomes legally binding after decision of Federal Supreme Court

The Federal Supreme Court has dismissed the appeal filed by Tornos Holding AG against a decision of the Court of Arbitration of SIX Group. As a result, the decision of the Court of Arbitration ordering Tornos Holding AG to pay a fine of CHF 300,000 for breach of accounting standards has become final.

In its decision of 26 March 2020, the Sanctions Commission of SIX Group AG imposed a fine of CHF 500,000 against Tornos Holding AG concerning culpable violations of the regulations on financial reporting and thus Art. 51 of the Listing Rules as well as Art. 6 of the Directive on Financial Reporting.

The Sanctions Commission concluded that Tornos Holding AG had violated Swiss GAAP FER by improperly retaining and partially reversing a provision for employee benefit obligations and that, as a result, the 2016 and 2017 financial statements did not present a true and fair view of the company's net assets, financial position and results of operations.

In April 2020, Tornos Holding AG filed an appeal against this decision with the Federal Administrative Court. In the appeal, it was argued that the Federal Administrative Court and not the Court of Arbitration of SIX Group AG was the competent court for the review of the sanction decision. In its verdict of 16 February 2021, the Federal Administrative Court did not accept the appeal.

In addition, Tornos Holding AG initiated simultaneous proceedings before the Court of Arbitration of SIX Group AG, which were initially suspended until the decision of the Federal Administrative Court. After the arbitration proceedings were resumed, the Court of Arbitration issued its final award on 20 December 2022. Therein, it confirmed the conclusions of the Sanctions Commission on the violation of the accounting standards, but reduced the fine to CHF 300,000, inter alia due to the sensitivity of Tornos Holding AG to sanctions.

Tornos Holding AG filed an appeal against this arbitration decision with the Federal Supreme Court. In its ruling of 24 May 2023, the Federal Supreme Court has now dismissed the appeal, to the extent that it was accepted at all.

The arbitral award by which Tornos Holding AG was ordered to pay a fine of CHF 300,000 has therefore become final.