Judge Clears HSBC In $70M Row Over Untested Hedge Funds

Law360, New York (July 9, 2012, 6:03 PM EDT) -- A New York federal judge on Monday granted summary judgment to HSBC Bank USA NA in a $70 million contract suit brought by Toledo Fund LLC alleging the bank failed to properly vet hedge funds included in a structured financial product it sold.

U.S. District Judge Katherine B. Forrest said that Toledo had given HSBC wide discretion to decide which hedge funds were eligible for the product, and had not raised a triable issue that HSBC had failed to adequately test the funds. Toledo chose to...
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