Wednesday, 26 April 2017
Last updated 6 hours ago
Sep 9 2011 | 12:39pm ET
HSBC can't escape liability for its role as the custodian for a Bernard Madoff feeder fund for a mere $62.5 million.
A federal judge in New York has rejected that proposed settlement with investors in the Thema International Fund. U.S. District Judge Richard Berman blasted a number of "obvious deficiencies," including a provision giving $10 million to the lawyers in the class action suit to sue non-settling defendants outside of the U.S.
The proposed settlement is "not fair, reasonable or adequate, even at this preliminary stage," Berman ruled.