FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
For the
month of October
HSBC Holdings plc
42nd
Floor, 8 Canada Square, London E14 5HQ, England
(Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or
Form 40-F).
Form
20-F X Form 40-F
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART,
DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM ANY JURISDICTION WHERE
TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR
REGULATIONS OF SUCH JURISDICTION
26 October 2025
HSBC Holdings plc
Update on Herald Fund SPC litigation relating to the Madoff
fraud
In a 2009 lawsuit in Luxembourg relating to the Bernard L. Madoff
Investment Securities LLC fraud, HSBC Securities Services
Luxembourg ('HSSL') is defending a claim brought by Herald Fund SPC
('Herald') for restitution of securities and cash. For prior
disclosure on this matter, please refer to page 98 of the HSBC
Holdings plc 2025 Interim Report
(https://www.hsbc.com/investors/results-and-announcements).
On 24 October 2025, the Luxembourg Court of Cassation denied HSSL's
appeal in respect of Herald's securities restitution claim, but
accepted HSSL's appeal in respect of Herald's cash restitution
claim. HSSL will now pursue a second appeal before the Luxembourg
Court of Appeal.
If HSSL is unsuccessful in that second appeal, it will contest the
amount HSSL is required to pay in subsequent proceedings before the
Court of Appeal.
Following this development, HSBC Holdings plc will recognise a
provision of US$1.1bn in its consolidated financial results for
Q325, an around 15 bps impact on the Group's CET1 capital ratio.
Given the pendency of the second appeal and the complexities and
uncertainties associated with determining the quantum of
restitution, the eventual financial impact could be significantly
different. The provision will be classified as a material notable
item and will not impact FY25 RoTE excluding notable items or any
dividend.
HSBC's Q325 results will be announced as planned on 28 October
2025.
For and on behalf of
HSBC Holdings plc
Aileen Taylor
Company Secretary
This announcement contains both historical and forward-looking
statements. All statements other than statements of historical fact
are, or may be deemed to be, forward-looking statements.
Forward-looking statements may be identified by the use of terms
such as 'expects,' 'targets,' 'believes,' 'seeks,' 'estimates,'
'may,' 'intends,' 'plan,' 'will,' 'should,' 'potential,'
'reasonably possible', 'anticipates,' 'project', or 'continue',
variations of these words, the negative thereof or similar
expressions or comparable terminology. HSBC has based the
forward-looking statements on current plans, information, data,
estimates, expectations and projections about, among other things,
results of operations, financial condition, prospects, strategies
and future events. These forward-looking statements are subject to
risks, uncertainties and assumptions about us, as described under
'Cautionary statement regarding forward-looking statements'
contained in the HSBC Holdings plc Annual Report on Form 20-F for
the year ended 31 December 2024, filed with the SEC on 20 February
2025 (the '2024 Form 20-F') and in subsequent reports on
Form 6-K furnished to or filed with the SEC. HSBC undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. In light of these risks, uncertainties and
assumptions, the forward-looking events discussed herein might not
occur. Investors are cautioned not to place undue reliance on any
forward-looking statements, which speak only as of their dates. No
representation or warranty is made as to the achievement or
reasonableness of such forward-looking statements. Additional
information, including information on factors which may affect the
HSBC Group's business, is contained in the 2024 Form 20-F and in
subsequent reports on Form 6-K.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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HSBC
Holdings plc
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By:
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Name:
Aileen Taylor
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Title:
Group Company Secretary and Chief Governance Officer
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Date:
27 October 2025
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