A New York judge has rejected a $62.5 million settlement that calls for HSBC Holdings PLC to pay to resolve a lawsuit brought by a hedge fund that lost money in Bernard Madoff’s fraud.

Federal Judge Richard Berman in Manhattan rejected the deal Wednesday, saying there were inadequate disclosures about legal fees and administrative costs.

The bank had planned to pay the money to investors in Thema International Fund PLC, an Ireland-based fund. Thema had funneled money to Madoff Securities before Madoff disclosed his fraud in December 2008. The lawsuit alleged the bank that provides administrative services to the fund should have known about the fraud.

(Source: NY Post)