UBS AG, Europe’s largest bank, must pay $29.3 million in damages for discriminating against Laura Zubulake, a former saleswoman who sued the firm for sex bias, a federal jury in New York decided yesterday.

The panel awarded $9.1 million for lost wages and almost $20.2 million in punitive damages against Zurich based UBS.

Ms. Zubulake’s lawyer, Jim Hubbard, had urged the jury to “make an example” out of UBS, citing the bank’s “disrespect for the law.”

“It’s been a three-year battle,” said Ms. Zubulake, 44, who worked on the UBS Asian stocks desk in Stamford, Conn., and Manhattan from 1999 to 2001. “I hope it sends a message to women on Wall Street to stand up for their rights and for what they believe.”

The case is one of the few bias suits against a Wall Street bank decided by a jury. Most are settled, dismissed, or resolved through private arbitration. In July, Morgan Stanley agreed to pay $54 million to end a suit by the U.S. Equal Employment Opportunity Commission on behalf of ex-bond seller Allison Schieffelin and 300 other women at the firm just before it went to trial.

“We are disappointed with the verdict rendered by the jury today,” a UBS spokesman, Kris Kagel,said. “We regard the amount awarded as excessive and will now move to set aside the verdict. UBS is committed to its diversity efforts and will continue to ensure that it has an open and diverse work environment.” Jury foreman Harold Coles said the panel of six women and two men found nine separate violations of the UBS employee manual.

Another juror, Monika Iwinski, said the group reached a quick decision on Ms. Zubulake’s claim that she was fired because she complained about bias to federal regulators.

“It was obvious for us,” Ms. Iwinski said.

The panel had been deliberating since Monday afternoon.

Ms. Zubulake, who testified during the three-week trial, said her boss, Matthew Chapin, belittled her in front of co-workers and denied her important accounts.

The bank denied the bias claims and said it fired Ms. Zubulake because she undermined associates and disobeyed Mr. Chapin, who headed the American based Asia equities desk.

During the trial, a former UBS sales assistant testified that she overheard Ms. Chapin call Ms. Zubulake “old” and “ugly.” Peggy Yeh told jurors that Chapin, who was also her superior, “made a lot of sexual insinuations against women” at work.

Ms. Yeh testified that when she left UBS, she said in her exit interview that “there are no opportunities unless you sleep with the boss.”

Mr. Chapin testified that he didn’t make demeaning comments to Ms. Zubulake, or say the things Ms. Yeh attributed to him. He called Ms. Zubulake “highly disobedient and confrontational.”

Mr. Chapin denied her assertion that he authorized brokers to host strip club outings for clients. He’s currently a salesman for UBS.

Ms. Zubulake filed a bias complaint with the EEOC on August 16, 2001. The agency, which enforces federal laws barring job discrimination, elected not to bring a case against the bank.

Jurors at the trial were shown an August 21, 2001, e-mail in which Mike Davies, a top human resources executive at UBS, told a colleague that he’d discussed Ms. Zubulake’s case with another executive, Brad Orgill, who was head of Asia Pacific Equities.

“I spoke to Brad,” Mr. Davies wrote in the e-mail. “He’s looking to exit her asap.”

Mr. Orgill testified that he didn’t recall such an exchange with Mr. Davies. He also said he didn’t remember receiving an August 31, 2001, e-mail from a subordinate that referred to “LZ” and said, “ok once lawyers have been signed off, probably one month.” Mr. Zubulake was fired on October 9, 2001.

The case is Zubulake v. UBS, 02-CV-1243, U.S. District Court for the Southern District of New York.