Madoff Trustee Appeals Ruling Rejecting $9 Billion in Damages in HSBC Case

The liquidator of Bernard L. Madoff’s firm appealed a judge’s ruling on his lawsuit against HSBC Holdings Plc (HSBA) that threw out almost $9 billion in damages demanded from HSBC and feeder funds. U.S. District Judge Jed Rakoff in New York ruled July 28 that trustee Irving H. Picard has no right to sue on behalf of customers or the Madoff estate, using common-law claims against parties “who allegedly violated a duty to Madoff Securities’ customers by failing to detect Madoff’s fraud.” The trustee was free to pursue $2 billion in bankruptcy claims, Rakoff ruled. Read Bloomberg report here.