(Reuters) -HSBC Holdings said on Monday it will recognise a provision of $1.1 billion in its third-quarter results after a Luxembourg court ruling in a long-running lawsuit tied to the Bernard Madoff investment fraud.

HSBC became entangled in the Madoff scandal through its role as service provider to several funds that invested with Bernard L. Madoff Investment Securities LLC. Herald Fund SPC sued HSBC’s Luxembourg unit in 2009 seeking restitution of assets it said were lost in the fraud.

The Luxembourg Court of Cassation on October 24 denied an appeal by HSBC Securities Services Luxembourg (HSSL) over the restitution of securities claimed by Herald Fund SPC, but accepted its appeal on a separate cash restitution claim, the bank said.

HSSL will now pursue a second appeal before the Luxe

See Full Page