HSBC has agreed to pay $62.5 million to settle claims against it in the class action lawsuit pending in New York on behalf of investors in the Thema International Fund PLC, an Irish UCITS fund whose assets were invested with Bernard Madoff.
HSBC provided custody and administration to Thema and other Madoff funds. Although Madoff Securiites claimed in November 2008 that Thema and the other funds had a total net asset value of $8.4 billion, in reality they totaled only $4.3 billion, according to information provided by HSBC.
Thema alone was purported to be valued at $1.1 billion by Madoff in 2008, but apparently had only $312 million in assets.
In settling the class action suit brought by Thema investors, HSBC continues to deny any wrongdoing.
The settlement, which is solely in respect of investors in Thema, shall in no way be construed or deemed to be evidence of or an admission or concession with respect to any claim of any fault or liability or wrongdoing or damage whatsoever, HSBC said in a statement. HSBC considers it has good defenses against the Madoff-related claims that have been brought against it and will continue to defend the other Madoff-related proceedings vigorously.
(CG)