HSBC Wins Dismissal of Madoff Trustee Claims

July 28, 2011

On Thursday, July 28, U.S. District Judge Jed Rakoff dismissed more than $6.5 billion in common law claims brought by the Madoff Trustee against Cleary Gottlieb client HSBC, on the ground that the Trustee lacked standing to bring those claims. Judge Rakoff returned the case to the Bankruptcy Court for adjudication of the Trustee’s more conventional clawback claims (which Cleary Gottlieb did not seek to dismiss).