In this an undated photo provided by Greenlight Capital, Inc., David Einhorn, president of the private investment firm Greenlight Capital, Inc., is shown. The cash-strapped New York Mets owners announced Thursday, May 26, 2011, that they have agreed to sell a minority interest in the club to Einhorn for $200 million, with the new partner predicting that the team's financial situation will improve. The agreement would allow Mets owners Fred Wilpon and Saul Katz to retain control of the team, which has been damaged by the Bernard Madoff scandal. AP/Greenlight Capital, Inc., Eric McNatt
LONDON — HSBC Holdings PLC says it has agreed to pay $62.5 million to settle a lawsuit brought by a hedge fund that lost money from the Bernard Madoff fraud.
The bank said Tuesday it would pay the money to investors in Thema International Fund PLC, an Ireland-based fund that brought a class-action lawsuit in New York.
At the time Thema, an Ireland-based fund, 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.
The bank said the settlement, which is subject to U.S. court approval, did not amount to any admission of wrongdoing. It is thought to be the first settlement by a fund custodian related to the huge Ponzi scheme.