08-09-2011: Madoff - Deminor reacts to Judge Berman's decision re: Thema settlement

 

Deminor takes notice of U.S. District Judge Berman's decision to reject the settlement agreement entered into between HSBC and a Thema investor in the framework of a US class action, stating it is "not fair, reasonable or adequate, even at this preliminary stage" and underlining "obvious deficiencies".

As a consequence of that decision, we are of the opinion that any future settlement discussions should take place directly between European investors (and their representatives) and the defendants (i.e. custodian bank, auditors and other service providers to the feeder-funds) in the framework of lawsuits filed before the European courts (i.e. Ireland and Luxembourg).

We strongly believe that the liability of HSBC as custodian to the so-called "Madoff feeder-funds" is a purely European matter that should be resolved in a European context. Once more, this court decision underlines the important role and responsibility of European (judicial) authorities to bring relief to the thousands of investors who have suffered losses following the negligence of the service providers.

Deminor is active on the Madoff case since December 2008, and defends the interests of around 2.500 non-US investors who have invested in the so-called Madoff feeder-funds promoted in Europe. Lawsuits seeking damages have been filed before the courts of Luxembourg, Amsterdam and Monaco against the service providers of those feeder-funds.