Westlaw Journals weekly round-up

December 18, 2014

Westlaw Journals Weekly RoundupSome highlights from the past week’s litigation news headlines over at the Westlaw Journals blog include a suit against HSBC over Bernie Madoff’s billion-dollar Ponzi scheme and an Illinois city agrees to appoint an independent consultant on municipal bond offerings:

HSBC helped Madoff commit fraud, suit says: Instead of investigating “red flags” of Bernie Madoff’s billion-dollar Ponzi scheme, global bank HSBC chose to continue its business with him and was complicit in the fraud, a recently filed proposed class-action lawsuit says. The Dec. 10 complaint, filed by three investors in Bernard L. Madoff Investment Securities LLC in the U.S. District Court for the Southern District of New York, says HSBC was on notice of the fraud because of its business relationship with BLMIS. (Derivatives)

Illinois city will appoint independent consultant on municipal bond offerings: In early December, the city of Harvey, Ill., agreed to appoint an independent consultant before issuing any additional municipal bonds to settle civil securities fraud allegations brought by the Securities and Exchange Commission. The SEC accused Harvey and former city comptroller Joseph T. Letke of improperly diverting at least $1.7 million in bond proceeds to the city’s general operations accounts to pay its operating costs, including payroll. (Securities Litigation & Regulation)

Parents blame insurers for son’s overdose, death: The parents of a New York man who died following a drug overdose have sued his health insurers for medical malpractice and bad faith because they allegedly failed to approve him for inpatient detoxification treatment. Margot Head and William Harrison Williams say in a Nov. 19 lawsuit filed in the New York County Supreme Court that two insurers and the company the insurers used for utilization review should be required to pay the couple more than $300 million. (Insurance Bad Faith)