Bloomberg News

Madoff Trustee Files Appeal of Rakoff’s Ruling on HSBC Suit

December 14, 2011

Dec. 14 (Bloomberg) -- The trustee for Bernard Madoff’s defunct firm appealed a ruling by U.S. District Judge Jed Rakoff that he has no right to sue HSBC Holdings Plc and feeder funds for $9 billion in damages on behalf of Madoff customers using common-law claims to allege the bank owed them a duty and should have detected the fraud. Trustee Irving Picard, who has estimated that different aspects of the Rakoff ruling might cost Madoff investors as much as $11 billion in forfeited claims, was allowed to appeal the ruling.

To contact the reporter on this story: Linda Sandler in New York at lsandler@bloomberg.net

To contact the editor responsible for this story: Stephen Farr at sfarr@bloomberg.net


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