HSBC Settles Thema Fund’s Suit Over Madoff-Linked Losses

Thema International Fund Plc and HSBC Holdings Plc (HSBA) settled a lawsuit over the London-based bank’s liability for the fund’s losses of about $1.1 billion through Bernard Madoff’s Ponzi scheme. HSBC and Thema said the deal, for an undisclosed amount, doesn’t include an “admission of liability on the part of any party.” The settlement needs to be approved by Thema shareholders, who are expected to meet in July for that purpose, the parties said in a joint statement today. “Thema believes that it has a strong case but the settlement provides certainty and an early recovery, avoiding further years of expensive litigation,” according to the statement. HSBC said “it has good defenses but recognizes the risks and uncertainties inherent in defending a complex UCITS claim of this nature together with the significant burden and expense involved in doing so.” More on Bloomberg here.

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