A view of the logo of HSBC bank on a wall outside a branch in Mexico City, Mexico, on June 14, 2024.
Henry Romero | Reuters
HSBC said on Monday that it will recognize a provision of $1.1 billion in its third quarter results following a court ruling in Luxembourg related to the Bernard Madoff investment fraud case.
Herald Fund SPC sued HSBC’s Luxembourg unit in 2009, claiming restitution of securities and cash it said were lost in the fraud.
The court denied HSBC unit’s appeal in respect of Herald’s securities restitution claim, but accepted the unit’s appeal in respect of the cash restitution claim.
The bank will now pursue a second appeal before the Luxembourg Court of Appeal, and added that if unsuccessful, it would contest the amount to be paid in subsequent proceedings.
In its interim report for 2025 released in July, HSBC said Herald had claimed a restitution of securities and cash of $2.5 billion plus interest, or damages of $5.6 billion plus interest from HSBC.
HSBC said that various non-U.S. HSBC companies provided custodial, administration and similar services to a number of funds whose assets were invested with Bernard Madoff Investment Securities.
This is breaking news, please check back for updates.
