The agreement 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.
At the time Thema funneled money to Madoff Securities, various HSBC units provided custodial and administrative services to the fund. The lawsuit alleges that the bank should have known about the fraud.
In 2009, Mr. Madoff pleaded guilty to running a huge Ponzi scheme. He is now serving a 150-year prison sentence.
According to HSBC estimates, the purported net asset value of Thema as at 30 November 2008 was $1.1bn and that Thema’s actual transfers to Madoff Securities minus its actual withdrawals is approximately $312m.
HSBC in a statement said that the settlement, which is subject to US court approval, did not amount to any admission of wrongdoing.
HSBC also said that it will continue to defend the other Madoff- related proceedings vigorously.
