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HSBC Bank successfully defends against alleged breach of contract and various related tort claims arising from swap transaction

July 2012

Client(s) HSBC Bank USA, N.A

Jones Day successfully defended HSBC Bank USA, N.A. ("HSBC") in an action filed by Toledo Fund, LLC ("Toledo") in Supreme Court, New York County, and then removed to the United States District Court for the Southern District of New York. Toledo's complaint centered on a written swap agreement under which Toledo's gains and losses were based on the performance of certain referenced hedge funds. Toledo sought approximately $150 million in damages and stated that HSBC did not meet alleged obligations to ensure that the referenced hedge funds met certain eligibility requirements.

After HSBC obtained an early dismissal of the plaintiffs' fraud and tort claims, it conducted expedited discovery. One week before trial, HSBC then obtained summary judgment on the plaintiff's remaining contract claims.

Toledo Fund, LLC v. HSBC Bank USA, National Association, No. 11-CV-7686 (S.D.N.Y., July 9, 2012)

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