LONDON — HSBC Holdings, Europe’s biggest bank, said Tuesday it has agreed to pay $62.5 million to settle a group lawsuit in New York, filed by investors in a fund that lost money in Bernard Madoff’s fraud while the bank acted as custodian.
The accord, which needs court approval, applies to a class-action case against several HSBC units and other defendants by investors in the Ireland-based Thema International Fund, whose assets were invested with Bernard L. Madoff Securities LLC, HSBC said in a statement.
The settlement “shall in no way be construed” as an admission of fault, HSBC said in the statement. The London-based bank, which faces other Madoff-related lawsuits, has “good defenses” against them, it said.
Thema Fund, a so-called Madoff feeder fund, was controlled by Bank Medici, according to a statement by the fund’s law firm, Chapin Fitzgerald Sullivan & Bottini. Bank Medici is part of a $59 billion suit by the trustee liquidating Madoff’s firm.
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