HSBC Won't Face $265M Suit Over Flatotel Fraud

Law360, New York (December 14, 2012, 6:06 PM EST) -- A New York state appeals court admonished a French bank Thursday for trying to rope HSBC PLC into a $265 million lawsuit stemming from a fraud by convicted tax evaders involving the renovation of a Manhattan hotel, saying its attempts were little more than mere arguments.

HSBC doesn't have to face allegations it helped facilitate a conspiracy to dupe CDR Creances SAS out of hundreds of millions of dollars to renovate the Flatotel in midtown Manhattan, a five-judge panel ruled Thursday.

The case stems from a...
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