HSBC bank has settled a legal case over millions in losses by a fund that invested with jailed financier Bernard Madoff, ending what would have been a six-week trial in Dublin a day after it started.

HSBC settled the dispute with Kalix Fund Ltd, a spokesman said yesterday, without disclosing the terms.

Kalix sought $35.6 million from the bank, which it said was responsible for safeguarding the money it placed in Thema International Fund, which invested with Madoff.

HSBC, Europe's largest lender by market value, was custodian to Thema and faces more than 50 complaints in Ireland - including from Thema itself - for allegedly failing in its duties to the fund and investors.

Thema is seeking about €1 billion in assets lost after Madoff's arrest. Kalix, the first case to reach trial, does not stop others from pursuing claims. - Bloomberg