diff --git a/lib/tokenize.cpp b/lib/tokenize.cpp
index 7a7122020..632a268f3 100644
--- a/lib/tokenize.cpp
+++ b/lib/tokenize.cpp
@@ -1968,9 +1968,6 @@ bool Tokenizer::tokenize(std::istream &code,
     // specify array size..
     arraySize();
 
-    // simplify labels..
-    labels();
-
     simplifyDoWhileAddBraces();
 
     if (!simplifyIfAddBraces())
@@ -2031,6 +2028,9 @@ bool Tokenizer::tokenize(std::istream &code,
         }
     }
 
+    // simplify labels..
+    labels();
+
     // ";a+=b;" => ";a=a+b;"
     simplifyCompoundAssignment();
 
@@ -2456,9 +2456,9 @@ void Tokenizer::labels()
                 if (tok->str() == "{")
                     ++indentlevel;
                 else if (tok->str() == "}") {
-                    if (indentlevel <= 1)
-                        break;
                     --indentlevel;
+                    if (!indentlevel)
+                        break;
                 }
 
                 if (tok->str() == "(")
@@ -2468,6 +2468,17 @@ void Tokenizer::labels()
                         break;
                     --indentroundbraces;
                 }
+                if (!indentroundbraces && tok->str() == "case")
+                {
+                    while (0 != (tok = tok->next())) {
+                        if (Token::Match(tok->previous(), "%any% :"))
+                            break;
+                    }
+                    if (!(tok->next()) || tok->next()->str() != ";"){
+                        tok->insertToken(";");
+                        tok = tok->next();
+                    }
+                }
                 // simplify label.. except for unhandled macro
                 if (!indentroundbraces && Token::Match(tok, "[;{}] %var% :")
                     && !Token::Match(tok->next(), "public|protected|private")
@@ -4143,13 +4154,6 @@ bool Tokenizer::simplifyTokenList()
 
     simplifyIfAssign();    // could be affected by simplifyIfNot
 
-    for (Token *tok = _tokens; tok; tok = tok->next()) {
-        if (Token::Match(tok, "case %any% : %var%"))
-            tok->tokAt(2)->insertToken(";");
-        if (Token::Match(tok, "default : %var%"))
-            tok->next()->insertToken(";");
-    }
-
     // In case variable declarations have been updated...
     setVarId();
 
diff --git a/test/testtokenize.cpp b/test/testtokenize.cpp
index 889321ecc..2508ace4e 100644
--- a/test/testtokenize.cpp
+++ b/test/testtokenize.cpp
@@ -4666,8 +4666,11 @@ private:
     }
 
     void switchCase() {
-        ASSERT_EQUALS("void foo ( int i ) { switch ( i ) { case -1 : break ; } }",
+        ASSERT_EQUALS("void foo ( int i ) { switch ( i ) { case -1 : ; break ; } }",
                       tokenizeAndStringify("void foo (int i) { switch(i) { case -1: break; } }"));
+        //ticket #3227
+        ASSERT_EQUALS("void foo ( ) { switch ( n ) { label : ; case 1 : ; label1 : ; label2 : ; break ; } }",
+                      tokenizeAndStringify("void foo(){ switch (n){ label: case 1: label1: label2: break; }}"));
     }
 
     void simplifyPointerToStandardType() {