HSBC Holdings Plc’s Luxembourg unit was sued by Herald Fund SPC, which lost money invested with Bernard Madoff, seeking the assets the bank reported in its last net asset value calculation as custodian.
The Herald Fund filed a lawsuit in Luxembourg today seeking about 1.6 billion euros ($2.15 billion) that HSBC Securities Services Luxembourg held in cash and shares for the fund, said Andre Lutgen, a lawyer for the fund. HSBC failed to protect the funds by employing Bernard L. Madoff Investment Securities LLC as a sub-custodian, Lutgen said.
HSBC also was sued in Chicago this week over matters relating to Household International. That suit, according to the law firm, could be worth $1 billion or more.
In mid-March HSBC and Wells Fargo were hit with lawsuits on Friday accusing the banks of steering African-American homeowners into mortgages with higher interest rates than white borrowers with similar credit histories.
HSBC Vice President of Public Affairs Neil Brazil said the bank does not comment on litigation but that “HSBC stands by its fair lending and consumer-protection practices, and we are confident that we are treating our customers fairly and with integrity.”