HSBC Holdings Plc’s Luxembourg unit was sued by the Herald Fund SPC, which lost money invested with Bernard Madoff, for the assets that HSBC reported in its last calculation as custodian.
The fund is claiming assets valued at about 1.6 billion euros ($2.15 billion) that HSBC Securities Services Luxembourg SA held as the fund’s custodian in a Luxembourg account, said Andre Lutgen, a lawyer for the fund. He said the fund filed a lawsuit in Luxembourg on April 3.
“The board of directors has taken detailed advice and has concluded that the most appropriate course of action in the protection of the value of its shareholders’ investments is, as a first step, to commence these proceedings,” the funds’ directors said in an e-mailed statement. “We anticipate that other legal actions will be filed against other” firms.
The case is the second to target HSBC after several lawsuits sought documents or repayments from UBS AG, custodian bank for another fund that suffered losses through Madoff.
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