HSBC says it will recognize a $1.1 billion provision in its third-quarter results after a Luxembourg court ruling related to the Bernard Madoff investment fraud. The case dates back to 2009 when Herald Fund SPC sued HSBC’s Luxembourg unit seeking restitution for lost securities and cash.

The court upheld Herald’s claim regarding securities but ruled in HSBC’s favor on the cash portion. HSBC plans to file a second appeal and said it would challenge the payment amount if the appeal is unsuccessful.

Shares of HSBC declined following the update, with Hong Kong-listed stock down 1.1% and London shares 1.3% lower.

Madoff, behind the largest investment fraud in U.S. history, defrauded clients of around $65 billion before his arrest in 2008. He pleaded guilty in 2009 and died in 2021 while serving a 150-year sentence.

HSBC noted that its provision will reduce its Common Equity Tier 1 ratio by about 15 basis points. Analysts had estimated the bank’s CET1 ratio to be around 14.5% for the third quarter. Morningstar analysts said the charge is unlikely to affect core operations but may slightly impact investor sentiment.

HSBC is currently undergoing a major restructuring under CEO Georges Elhedery as it prepares to release earnings on Tuesday.