Judge Kills Most Of $70M HSBC Due Diligence Suit

Law360, New York (February 3, 2012, 6:23 PM EST) -- A New York federal judge on Friday threw out much of a $70 million contract suit alleging HSBC Bank USA NA failed to properly vet hedge funds included in a structured financial product it sold, including allegations that the bank committed fraud.

Of six claims Toledo Fund LLC brought against the global bank in September, only a breach of contract claim will go forward, U.S. District Judge Katherine B. Forrest said in a written order that granted most of HSBC's motion to dismiss.

Judge Forrest added...
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