9th Circ. May Toss $16M HSBC Suit Over Madoff Investment

Law360, San Francisco (January 15, 2014, 5:59 PM EST) -- The Ninth Circuit on Wednesday threatened to toss a hedge fund's $16 million lawsuit claiming HSBC Bank USA NA misrepresented leveraged securities fraudulently managed by Bernard Madoff, saying the court may not have jurisdiction because the fund hasn't shown that its partners live in multiple states.

The appeals panel challenged Wailea Partners LP to prove it has the diversity necessary to make its case a federal one, pointing out that Wailea itself is a limited partnership based in Delaware.

“I don't see where you pleaded the...
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