HSBC Holdings is setting aside $1.1 billion for a lawsuit in Luxembourg connected to Bernard Madoff’s Ponzi scheme, one of the largest financial frauds in U.S. history.
The London-based bank said Monday that one of its subsidiaries is defending a claim brought by Herald Fund SPC. The claim seeks restitution of securities and cash related to the Bernard L. Madoff Investment Securities LLC fraud.
On Friday, the Luxembourg Court of Cassation denied the HSBC subsidiary’s appeal regarding Herald’s securities restitution claim.
However, the court accepted the unit’s appeal concerning Herald’s cash restitution claim.
