REG - HSBC Holdings PLC - Herald Fund litigation relating to Madoff fraud

HSBC HoldingsAnnouncement

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RNS Number : 8530E  HSBC Holdings PLC  27 October 2025

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26 October 2025

 

HSBC Holdings plc

 

Update on Herald Fund SPC litigation relating to the Madoff fraud

 

In a 2009 lawsuit in Luxembourg relating to the Bernard L. Madoff Investment
Securities LLC fraud, HSBC Securities Services Luxembourg ('HSSL') is
defending a claim brought by Herald Fund SPC ('Herald') for restitution of
securities and cash. For prior disclosure on this matter, please refer to page
98 of the HSBC Holdings plc 2025 Interim Report
(https://www.hsbc.com/investors/results-and-announcements).

 

On 24 October 2025, the Luxembourg Court of Cassation denied HSSL's appeal in
respect of Herald's securities restitution claim, but accepted HSSL's appeal
in respect of Herald's cash restitution claim. HSSL will now pursue a second
appeal before the Luxembourg Court of Appeal.

 

If HSSL is unsuccessful in that second appeal, it will contest the amount HSSL
is required to pay in subsequent proceedings before the Court of Appeal.

 

Following this development, HSBC Holdings plc will recognise a provision of
US$1.1bn in its consolidated financial results for Q325, an around 15 bps
impact on the Group's CET1 capital ratio. Given the pendency of the second
appeal and the complexities and uncertainties associated with determining the
quantum of restitution, the eventual financial impact could be significantly
different. The provision will be classified as a material notable item and
will not impact FY25 RoTE excluding notable items or any dividend.

 

HSBC's Q325 results will be announced as planned on 28 October 2025.

 

 

For and on behalf of

HSBC Holdings plc

 

Aileen Taylor

Company Secretary

 

 

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plc Annual Report on Form 20-F for the year ended 31 December 2024, filed with
the SEC on 20 February 2025 (the '2024 Form 20-F') and in subsequent reports
on Form 6-K furnished to or filed with the SEC. HSBC undertakes no obligation
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result of new information, future events or otherwise. In light of these
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representation or warranty is made as to the achievement or reasonableness of
such forward-looking statements. Additional information, including information
on factors which may affect the HSBC Group's business, is contained in the
2024 Form 20-F and in subsequent reports on Form 6-K.

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