HSBC has settled a lawsuit over millions in losses by a fund that invested with Bernard Madoff, ending what would have been a six-week trial in Dublin the day after it started.
Bloomberg reports that HSBC settled the dispute with Kalix Fund Ltd., a spokesman said by e-mail Monday, without disclosing the terms. Kalix sought $35.6m from the bank, which it said was responsible for safeguarding the money it placed in Thema International Fund, which invested with Madoff.
HSBC was custodian to Thema and faces more than 50 complaints in Ireland - including from Thema itself - for allegedly failing in its duties to the fund and its investors. Thema is seeking about $1.3bn in assets lost after Madoff’s arrest. Kalix, the first case to reach trial, doesn’t stop others from pursuing claims with its settlement under Irish rules, according to a Kalix lawyer.
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